empty
23.09.2024 03:32 PM
AUD/USD. Analysis and Forecast

This image is no longer relevant

Today, despite the release of weaker PMI data from Australia—the Purchasing Managers' Index—the Australian dollar continues to maintain its position against the U.S. dollar.

The AUD/USD pair is likely rising due to the People's Bank of China (PBOC) injecting liquidity into the banking system, as Australia and China are close trading partners. Therefore, developments in China's economy are currently having a significant impact on Australian markets.

The People's Bank of China injected 74.5 billion yuan into the banking system through a 14-day reverse repo operation, lowering the interest rate to 1.85% from 1.95%. Additionally, it injected 160.1 billion yuan in liquidity through a 7-day reverse repo. The interest rate for this operation remained unchanged at 1.7%.

Moreover, the Australian dollar is strengthening due to expectations surrounding the upcoming interest rate decision by the Reserve Bank of Australia (RBA), scheduled for Tuesday. It is anticipated that the RBA will keep the Official Cash Rate (OCR) unchanged at 4.35%, backed by strong labor market data and ongoing inflationary pressures.

In contrast, the U.S. dollar may weaken, as Federal Reserve policymakers forecast an additional 50 basis points rate cut by the end of 2024. This follows last week's aggressive 50 basis points cut to a range of 4.75–5.00%.

For trading opportunities, attention should be given to the release of U.S. PMI data, expected later in today's North American session.

From a technical perspective, the Australian dollar holds above the 0.6800 level. The 14-day Relative Strength Index (RSI) is holding above 50, indicating that price movements following the release of U.S. news will provide a clearer picture of the pair's trend.

Given that the AUD/USD pair has not fallen below the round 0.6800 level and is trading near its nine-month high, reached on September 19, at 0.6840, a rebound above this level could push the pair even higher.

On the other hand, the AUD/USD pair may find support around the 9-day Exponential Moving Average (EMA) at 0.6767, with the next key support at the psychological level of 0.6700. A break below this level could lead the pair toward the 100-day Simple Moving Average (SMA) and then to its six-week low at 0.6622, near the 200-day SMA.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/JPY. Analysis and Forecast

The GBP/JPY pair is retreating from the psychological level of 190.00, or a two-week high reached earlier today. Following disappointing UK PMI data, selling pressure has intensified, pulling spot prices

Irina Yanina 18:16 2025-04-23 UTC+2

Market walks through minefield

If the market can rally this much on hints from Treasury Secretary Scott Bessent about de-escalation in the trade conflict with China, imagine how high the S&P 500 could jump

Marek Petkovich 12:35 2025-04-23 UTC+2

The Likelihood of a Euro Reversal to the South Is Increasing

As expected, the ECB cut all key interest rates by a quarter-point, bringing the deposit rate down to 2.25%. At this meeting, no new staff projections were released, and given

Kuvat Raharjo 12:01 2025-04-23 UTC+2

Markets Await a Massive Rally if the U.S. Starts Real Negotiations with China (There is a likelihood of continued growth in #NDX and Ethereum)

A new wave of euphoria has swept through the markets. Many believe it's not a coincidence: take everything away from a person and then provide them with even the smallest

Pati Gani 09:03 2025-04-23 UTC+2

What to Pay Attention to on April 23? A Breakdown of Fundamental Events for Beginners

A considerable number of macroeconomic events are scheduled for Wednesday. All of them are Purchasing Managers' Index (PMI) reports for April in the services and manufacturing sectors. The indices will

Paolo Greco 07:01 2025-04-23 UTC+2

GBP/USD Overview – April 23: The British Pound Can't Stop Smiling

On Tuesday, the GBP/USD currency pair traded much more calmly, yet again showed signs of a "maxed-out flat" pattern. As previously noted, the US dollar has only had two behaviors

Paolo Greco 04:56 2025-04-23 UTC+2

EUR/USD Overview – April 23: Another Calm Before Another Collapse?

The EUR/USD currency pair traded more calmly on Tuesday than on Monday. The US dollar managed to avoid another fall, but it's too early to celebrate. The greenback can collapse

Paolo Greco 04:56 2025-04-23 UTC+2

USD/JPY. On the Threshold of the 139th Figure

The USD/JPY pair has been in a consistent downtrend for the fourth consecutive week. On Tuesday, sellers pushed the pair to the edge of the 139.00 area, hitting the lowest

Irina Manzenko 00:46 2025-04-23 UTC+2

The Dollar Has Been Replaced. Nature Abhors a Vacuum

Fear paralyzes, but action persists. Investors are slowly overcoming their concerns over Donald Trump's attacks on the independence of the Federal Reserve and are starting to lock in profits

Marek Petkovich 00:08 2025-04-23 UTC+2

Bitcoin Took Its Chance

Slow and steady wins the race! Bitcoin quietly broke through to its highest levels since early March amid Donald Trump's attacks on Jerome Powell. When the independence of the Federal

Marek Petkovich 00:08 2025-04-23 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.