AUD/USD breaks to a new weekly high
Following the RBA’s hawkish rate cut supports, we are continuing to see bullish AUD/USD price action.
Earlier this week, the RBA provided no clear easing bias, citing risks on both sides of the inflation outlook. While it acknowledged that the disinflationary process is progressing, a strong labour market has kept policymakers cautious. The central bank’s governor Bullock highlighted risks to inflation, saying we cannot declare victory on inflation yet.
Overnight, we had some strong labour market data that further supported the Aussie dollar, and just now we have seen rates break to a new weekly high.
From a technical standpoint, the trend has been bullish on the AUD/USD ever since forming a hammer candle around the 0.6130 area a couple of weeks ago. Since then, it has consistently printed bullish price action, keeping buyers in control.
Previous resistance at 0.6330 has now turned into support, keeping the path of least resistance to the upside. This has potentially paved the way for a run toward the 0.6500 handle in the next few days.
Ahead of that, the 38.2% Fibo level comes into focus as 0.6415 next.
On the downside, the 21-day exponential moving average at around 0.6280 serves as the next support in the event of a breakdown below the abovementioned 0.6330 level.
By Fawad Razaqzada, market analyst with FOREX.com
Earlier this week, the RBA provided no clear easing bias, citing risks on both sides of the inflation outlook. While it acknowledged that the disinflationary process is progressing, a strong labour market has kept policymakers cautious. The central bank’s governor Bullock highlighted risks to inflation, saying we cannot declare victory on inflation yet.
Overnight, we had some strong labour market data that further supported the Aussie dollar, and just now we have seen rates break to a new weekly high.
From a technical standpoint, the trend has been bullish on the AUD/USD ever since forming a hammer candle around the 0.6130 area a couple of weeks ago. Since then, it has consistently printed bullish price action, keeping buyers in control.
Previous resistance at 0.6330 has now turned into support, keeping the path of least resistance to the upside. This has potentially paved the way for a run toward the 0.6500 handle in the next few days.
Ahead of that, the 38.2% Fibo level comes into focus as 0.6415 next.
On the downside, the 21-day exponential moving average at around 0.6280 serves as the next support in the event of a breakdown below the abovementioned 0.6330 level.
By Fawad Razaqzada, market analyst with FOREX.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.