The AUDUSD currency pair dropped by over 0.50% and reached a daily low around 0.6380.

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• AUD/USD fell more than 0.50%, to a daily low near 0.6380.

The pair currently trades last at 0.64062.

The previous day high was 0.6488 while the previous day low was 0.6413. The daily 38.2% Fib levels comes at 0.6442, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6459, expected to provide resistance.

At the end of the week, the USD gained ground against its rivals, mainly driven by the Federal Reserve’s (Fed) chairman, Jerome Powell, at the Jackson Hole Symposium. On the Aussie side, no relevant data or events are on the docket in Friday’s session.

Jerome Powell’s speech at the Jackson Hole Symposium sounded hawkish. He stated that the economy didn’t cool down as expected and that the Fed will proceed “carefully” for the next decisions. He then pointed out that “there is no way to know what the neutral rate would be,” and markets are betting higher odds of another hike in 2023.

According to the CME FedWatch tool, the odds of a 25 basis points (bps) hike in November rose to nearly 44% vs. 33% a week ago. The odds of a pause remain high in September while investors are betting on cuts in June-July 2024.

As a reaction, the US Treasury yield rose, with the 2,5 and 10-year rates rising to 5.07%, 4.46% and 4.25%, respectively, giving the USD a boost.

Based on the daily chart, it is evident that AUD/USD leans toward a bearish outlook in the short term. The Relative Strength Index (RSI) remains below its midline in negative territory, showcasing a southward slope. Similarly, the Moving Average Convergence Divergence (MACD) exhibits red bars, emphasising the strengthening bearish momentum for AUD/USD. Also, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), implying that the bears retain control on a broader scale.

Support levels: 0.6380, 0.6370 (cycle low), 0.6350.

Resistance levels: 0.6435, 0.6480, 0.6500 (20-day SMA).

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6399 at the time of writing. Pair opened at 0.6417 and is trading with a change of -0.28 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6511, 50 SMA 0.6646, 100 SMA @ 0.6657 and 200 SMA @ 0.6729.

The previous day high was 0.6488 while the previous day low was 0.6413. The daily 38.2% Fib levels comes at 0.6442, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6459, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6391, 0.6364, 0.6315
• Pivot resistance is noted at 0.6466, 0.6515, 0.6542

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