The Australian Dollar (AUD) is facing downward pressure against the US Dollar (USD) as traders anticipate the release of ISM Manufacturing PMI data. Despite this, the AUD/USD pair may receive some support from a positive risk sentiment driven by dovish expectations surrounding the US Federal Reserve’s policy stance.
Investors are closely monitoring Australia’s Q2 Gross Domestic Product (GDP) and July Trade Balance data, as well as an upcoming speech by Reserve Bank of Australia (RBA) Governor Michele Bullock, to gain insights into the central bank’s monetary policy stance.
Meanwhile, the US Dollar is strengthening as Treasury yields rise, but gains could be limited by expectations of a 25 basis point rate cut by the Fed in September. Traders are eagerly awaiting US employment data, particularly the August Nonfarm Payrolls (NFP) report, for further clarity on the timing and extent of Fed rate cuts.
Analysis: Australian Dollar’s Decline Despite RBA’s Hawkish Stance
- Australia’s Building Permits surged by 10.4% month-over-month in July, marking the strongest growth since May 2023.
- China’s Caixin Manufacturing PMI rose to 50.4 in August, indicating positive growth and impacting Australia due to their close trade relationship.
- The US GDP grew at a rate of 3.0% in Q2, exceeding expectations and showing economic strength.
Technical Analysis: Australian Dollar’s Position and Trends
The AUD/USD pair is currently trading around 0.6780, positioned above the nine-day Exponential Moving Average (EMA) and showing a short-term bullish trend. The Relative Strength Index (RSI) also supports a bullish trend.
In terms of resistance, the pair may face barriers at 0.6798 and 0.6900, while immediate support levels are at 0.6767 and 0.6743.
AUD/USD: Daily Chart
Australian Dollar Price Today
The Australian Dollar experienced a decline against the US Dollar today, as shown in the table below:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.10% | 0.05% | 0.08% | 0.10% | 0.04% | 0.10% | 0.30% | 0.11% |
Australian Dollar FAQs
Here are some frequently asked questions about the Australian Dollar:
- Interest rates set by the Reserve Bank of Australia (RBA) significantly impact the AUD.
- The health of the Chinese economy is a key factor influencing the AUD.
- The price of Iron Ore, Australia’s largest export, can drive movements in the AUD.
- The Trade Balance, reflecting exports and imports, also affects the value of the Australian Dollar.