Breaking News: AUD/USD Rebounds Strongly After US Election
The US Dollar (USD) faced renewed downside pressure on Thursday, following the sharp advance witnessed after the US election saw Republican Donald Trump become the 47th US President. In this volatile environment, AUD/USD quickly regained composure and surged past the 0.6600 barrier, propelled by several key factors.
Factors Driving AUD/USD Rebound:
- Chinese Trade Balance Results: Despite disappointing results, AUD shrugged off concerns about the Chinese economy and focused on positive factors like rebounding copper and iron ore prices.
- RBA Interest Rate Decision: The Reserve Bank of Australia (RBA) kept interest rates steady and adopted a neutral tone, signaling stability in the economy.
- Inflation Data: Recent inflation data shows steady growth, with potential Federal Reserve rate cuts offering additional support to AUD/USD.
Overall, AUD/USD remains resilient in the face of global economic uncertainties, with the potential for further gains in the near future.
AUD/USD Technical Analysis:
On the upward trend, AUD/USD is expected to encounter resistance levels at the interim 100-day and 55-day SMAs, before potentially reaching the 2024 high. In case of a downturn, support levels are identified to prevent significant losses in the short term.
The four-hour chart indicates a positive trend, with resistance levels to watch for and the RSI showing signs of improvement.
(Correction: RBA Governor’s name is Michele Bullock, not Michelle)
Conclusion:
Despite initial setbacks, AUD/USD has rebounded strongly in the aftermath of the US election, driven by a combination of factors including Chinese trade data, RBA policy decisions, and inflation trends. Investors should monitor key resistance and support levels to navigate potential market fluctuations and capitalize on trading opportunities.