AUD/USD Technical & Fundamental Outlook

FXOpen

AUD/USD on Wednesday bounced off sharply from 76.4% fib level around 0.9063 (the lowest level since September 4) and is being traded at 0.9115 in Asian Session today. 

Major Support & Resistance Levels

0.9125-0.9135 region is likely to act as strong barrier for Aussie dollar as it is an important channel resistance on four hour chart. A break above this level may open doors for 0.9196 (61.8% fib level) and then 0.9257 (55 MA on H4) and 9300 (100 DMA).

AUD/USD Technical & Fundamental Outlook

This bounce off, however, seems to be a short term correction of long term bearish trend. The pair has been trading in Head & Shoulder (H&N) price pattern since last few months. 0.9063 (76.4% fib level) is a very major support level for Aussie dollar, if it breaks the pair may resume journey towards 0.8845 (100% retracement) without any break as we do not seen any major hurdle below 0.9063 level.

Accommodative Policy & RBA Intervention

The recent sell-off began last week after the IMF recommended accommodative monetary policy for RBA, stating "With growth currently on the soft side, the real exchange rate still overvalued and weighing on the non-mining sector, and inflation within the target range, monetary policy should remain accommodative."

Later Governor Glenn Stevens, speaking to the Australian Business Economists annual dinner in Sydney last Thursday, said he was "open minded" on intervening to weaken the Australian dollar.

"Our position has long been, and remains that foreign exchange intervention can, judiciously used in the right circumstances, be effective and useful."

Daily Fundamentals

We had two economic reports about Australian Economy in Sydney Session:

  • HIA New Home Sales MoM (Oct) Previous 6.4%, Actual -3.8%
  • Private Capital Expenditure (Q3) Previous 1.6%, Actual 3.6%

There will be a thin US session today due to Thanksgiving holiday; rallies are usually expected in thin sessions because due to low volume, a few large dealers may alone cause high volatility in the market.  

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

European Currencies Testing Key Levels: Contributing Factors EUR/USD Price Forms Bullish Reversal Amid Key News GBP/USD Rate Surges to Two-Month High After Inflation News Market Analysis: GBP/USD Climbs Steadily While EUR/GBP Struggles Commodity Currencies Retreat from Local Highs

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond
Trader’s Tools

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond

Tesla's stock has experienced significant volatility since its IPO in 2010, driven by its significant technological advancements and status as a leading electric vehicle producer. This article explores Tesla's recent price history, analyses its outlook for 2024 and 2025, and

Commodities

Gold Price Drops Over 3.6% in 2 Days

The price of gold has fallen by more than 3.6% over 2 days, as indicated by today's XAU/USD chart. The day before yesterday, at the opening of the daily candle, the price of gold was $2421 per ounce,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.