Fundamental Analysis
During the week of August 19-23, 2024, the AUD/USD currency pair was influenced by several key factors:
- US Economic Data: The U.S. Dollar faced some weakness due to softer economic data and growing market expectations that the Federal Reserve might slow its pace of interest rate hikes. This dovish outlook slightly weakened the USD, giving some resilience to the AUD.
- Australian Economy: Domestically, Australia’s economic growth appeared sluggish, partly due to reduced demand from China, its largest trading partner. However, the Aussie dollar remained relatively resilient, supported by a weaker USD and stable commodity prices.
Technical Analysis
- Support and Resistance: On the technical front, the AUD/USD pair had key support at 0.6506, while resistance was observed at 0.6642. The currency pair exhibited some consolidation below the 0.6642 level, with a potential upward rally as long as it maintained support above 0.6506.
- Indicators: The AUD/USD has shown some positive momentum, especially with a breakout above the 55-day EMA, suggesting further upside towards 0.6798. However, a break below 0.6506 would likely turn the bias bearish, possibly retesting the 0.6348 level.
Outlook
The outlook for the AUD/USD during this period remained cautiously optimistic, contingent on external factors such as U.S. economic performance and global commodity trends. With the U.S. Dollar showing signs of weakness and the Australian Dollar being supported by stable commodity markets, the pair was expected to remain relatively stable, with potential for upward movement depending on how key support and resistance levels were managed.
Overall, traders were advised to watch for shifts in market sentiment, particularly related to U.S. Federal Reserve decisions and ongoing economic developments in China and Australia.
Thomas is a market analyst and self trader serving the community with his analysis and educational content from long time. The author has great exposure to different financial markets. He’s well-known for his day trading reviews and multiple timeframe analysis.
