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The AUD/USD pair witnessed a minor setback at 0.6575 during Friday’s session, a modest descent of 0.30%. That being said, the Reserve Bank of Australia’s (RBA) unwavering hawkish discourse and stronger Chinese inflation figures might limit the downside for the Aussie.Given the complex Australian economic prospect and the RBA’s hawkish inclination due to elevated inflation, markets persistently price just a 25 bps easing in 2024.
Daily digest market movers: RBA’s resolute hawkish tone and robust Chinese inflation data might favor the AUD
AUD/USD technical outlook: Pair faces strong resistance at the SMA convergence around 0.6000
AUD/USD’s price action over the previous week reflects that the bulls are encountering substantial resistance around the 0.6600 level, which coincides with the convergence of the 20,100 and 200-day Simple Moving Averages (SMA). However, support has been persistently holding strong at 0.6500.The Relative Strength Index (RSI) has been stagnant around the neutral zone, oscillating values near 49, indicating neither a significant buying or selling pressure. The large spike from nearly 30 to 49 this week suggests that the buyers made a stride toward mounting traction.More By This Author:AUD/JPY Price Analysis: Bearish Bias Subdued, Indicators Hint At Consolidation Phase
US Dollar Limps On Friday, Markets Await Clues On The US Economy
AUD/USD Sits Near Multi-week Peak, Bulls Await Sustained Strength Beyond 0.6600 Mark