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The Australian Dollar (AUD) appreciates following the moderate employment data release on Thursday. However, the Aussie Dollar faced challenges against the US Dollar (USD) due to declining copper and iron ore prices. The drop is exacerbated by worsening credit data from China, which, combined with reduced demand and a surplus of commodities, has put further pressure on the markets.The AUD/USD pair is under downward pressure as investors evaluate the Reserve Bank of Australia’s (RBA) monetary policy stance. Despite elevated wage growth in the second quarter, which has kept the RBA’s outlook hawkish, RBA Governor Michele Bullock has dismissed any possibility of rate cuts in the next six months. Bullock stressed that the Australian central bank remains vigilant about inflation risks and is prepared to increase rates further if needed.The US Dollar faces challenges after Wednesday’s Consumer Price Index (CPI) data showed a moderate increase in July’s annual US inflation rate. Investors are likely debating how much the Federal Reserve (Fed) will cut rates in September. While traders are leaning towards a more modest 25 basis point reduction, with a 60% probability, a 50 basis point cut remains a possibility. According to CME FedWatch, there is a 36% chance of the larger cut occurring in September.
Daily Digest Market Movers: Australian Dollar edges higher after jobs data
Technical Analysis: Australian Dollar falls to near 0.6600
The Australian Dollar trades around 0.6590 on Thursday. The daily chart analysis indicates that the AUD/USD pair tests the lower boundary of an ascending channel, which suggests a weakening bullish bias. Additionally, the 14-day Relative Strength Index (RSI) is positioned slightly below the 50 level, confirming the reinforcement of a bearish momentum.In terms of support, the lower boundary of the ascending channel around 0.6590 serves as an immediate support level for the AUD/USD pair. A break below this level could lead to testing the nine-day Exponential Moving Average (EMA) at 0.6580, followed by the throwback level at 0.6575. If the pair falls below this support region, it could reinforce a bearish outlook, potentially driving it toward the throwback level at 0.6470.On the upside, the AUD/USD pair might explore the area around the upper boundary of the ascending channel at the 0.6690 level. A breakout above this level could push the pair toward its six-month high of 0.6798, reached on July 11.
AUD/USD: Daily Chart
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc. More By This Author:GBP/JPY Rises To Near 189.00 Despite A Downbeat UK Inflation Report USD/CHF Holds Minor Losses Near 0.8650 Due To Dovish Fed, Rising Middle-East Tensions EUR/GBP Price Forecast: Breaks Below 0.8550; 14-day EMA Appears As A Next Support