The AUDUSD pair experienced a 0.19% increase on Monday, reaching a rate of 0.64156. However, it slightly declined during Tuesday’s trading session and was valued at 0.6410.

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• AUD/USD gained 0.19% on Monday, with a slight dip in Tuesday’s session, trading at 0.6410.

The pair currently trades last at 0.64156.

The previous day high was 0.6429 while the previous day low was 0.6379. The daily 38.2% Fib levels comes at 0.641, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6398, expected to provide support.

AUD/USD registered minuscule losses on Tuesday but finished Monday’s session on the green, gained 0.19% but remained within familiar levels as traders await the US Federal Reserve Chair Jerome Powell’s speech. The AUD/USD is trading at 0.6410, down 0.05%, as Tuesday’s Asian session begins.

Risk appetite improvement bolstered the Australian Dollar (AUD) against the US Dollar (USD). Monday’s Asian session developments, like the People’s Bank of China (PboC) slashing its one-year Loan Prime Rate (LPR) from 3.55% to 3.45%, amidst an ongoing economic slowdown. In fact, central bank officials and government regulators suggested that Chinese banks will need to boost loans to support China’s recovery.

In the meantime, global bond yields advanced, with the 10-year US Treasury bond yields climbing to a new six-year high, as investors position themselves ahead of the August 25 Jerome Powell speech, widely expected by market players. Analysts expect Powell to reinforce the Fed’s commitment to tame inflation while keeping all his options open regarding monetary policy. Nevertheless, if he strikes a dovish tone, that would pave the way for further AUD/USD upside in the back of a softer US Dollar, as Australia’s finished its hiking cycle.

Money market futures see the Reserve Bank of Australia (RBA) keeping rates unchanged, though there’s a 15 basis point repricing for March 2024. On the Federal Reserve front, traders priced in 11 basis points of interest rate increases for November’s monetary policy meeting.

Upcoming economic data would help AUD/USD traders assess economic conditions in both countries. The Australian economic agenda would feature PMIs, alongside Building Permits and Inflation for July. Upticks on inflation would open the door for a possible rate hike. On the US front, the docket would feature Existing Home Sales, Fed speakers, New Home Sales, S&P Global PMIs, Jobless Claims, Durable Good Orders, and Fed Chair Jerome Powell’s speech on Friday.

After forming a double top, the AUD/USD has extended its losses, though back-to-back bullish harami candlestick patterns could pave the way for further upside. If AUD/USD buyers reclaim the August 18 daily high of 0.6429, the 0.6500 figure is followed by the 0.6550 psychological level and the 0.6600 mark.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6414 at the time of writing. Pair opened at 0.6411 and is trading with a change of 0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6574, 50 SMA 0.6676, 100 SMA @ 0.6669 and 200 SMA @ 0.6734.

The previous day high was 0.6429 while the previous day low was 0.6379. The daily 38.2% Fib levels comes at 0.641, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6398, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6384, 0.6356, 0.6334
• Pivot resistance is noted at 0.6433, 0.6456, 0.6483

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