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 AUD/USD is finding its footing, currently stabilizing at around 0.6725, as the US dollar weakens further in anticipation of Fed Chair Jerome Powell’s speech at the Jackson Hole symposium.The Australian dollar’s resilience is bolstered by the minutes from the Reserve Bank of Australia’s latest meeting, indicating that the central bank is not in a hurry to ease monetary policy despite a slowdown in inflation. The RBA remains cautious, projecting inflation to stay above its 2-3% target range until the end of 2025. This suggests that interest rates may remain steady for an extended period, providing a stable backdrop for the Australian dollar.Recent data highlights robust performance in Australia’s private sector for August, particularly in services, while the contraction in manufacturing is easing. This paints a picture of an Australian economy that is adjusting well and could sustain its momentum without immediate monetary stimulus. Investors are watching closely for cues on future policy shifts, influencing forex forecasts.Technical analysis of AUD/USD The AUD/USD pair recently peaked at 0.6760 but is now poised for a correction. The immediate focus is on a potential descent to 0.6684, marking the first significant support level. Upon reaching this target, a retest of 0.6725 from below may occur, defining the boundaries of a possible consolidation range. A break below this consolidation could initiate a further decline towards 0.6600, potentially extending to 0.6555. The MACD indicator supports a bearish outlook in the short term, with the signal line peaking and poised for a downward trajectory. In the hourly frame, AUD/USD has retraced from a recent low of 0.6696 to 0.6725, indicating a corrective phase. The anticipated continuation of this downtrend could see the pair targeting 0.6686 shortly. If this support holds, a rebound to 0.6725 could follow. The Stochastic oscillator indicates an overbought condition, with the signal line expected to move downwards from 80 to 20, supporting the potential for further declines.More By This Author:USD/JPY Declines Amid Speculation On US Rate Cuts And Anticipation Of Fed Chairman’s Speech
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