In Friday’s session, the Australian Dollar (AUD) slightly recovered against the USD, as AUD/USD rebounded to 0.65515 due to corrective activities after intensive sell-offs in the previous sessions. The continual weakness in China’s economy paired with depreciating iron ore prices remain the significant contributor to the AUD’s dynamic performance.Despite the visible vulnerability in the Australian economy, the Reserve Bank of Australia (RBA) delays its rate cuts due to persistently high inflation. This stance could potentially limit further depreciation of the AUD. As per current forecasts, the RBA might be one of the last among the G10 central banks to implement rate cuts, a condition that could extend the AUD’s gains.
Daily digest market movers: Aussie sees marginal recovery, amidst continuing economic stress in China and Australia
AUD/USD Technical analysis: Bearish outlook endures with the pair resting below main SMAs
The AUD/USD movement below the 20,100 and 200-day Simple Moving Averages (SMAs) still signals a significant area of concern, suggesting that the downward trends might continue and the downward shifts seen in July weren’t just corrective.Key support levels line up at 0.6540, 0.6530, and 0.6500, while resistance levels lie at 0.6600 (ie., the 200-day SMA), 0.6610, and 0.6630.More By This Author:EUR/JPY Price Analysis: Risk of recovery After Deep Sell-OffUSD/CAD Price Analysis: Reaches Critical Point At Ceiling Of Three-Month Range AUD/USD Trades With Modest Gains Above Multi-Month Low, Focus Remains On US PCE Data
