AUD/USD Price Forecast: Riding High at $0.65969 Amid Fed Rate Cut Speculation

The AUD/USD price forecast reveals a positive trajectory for the Australian Dollar, registering a modest increase to $0.65969, which reflects a 0.43% rise. The currency has been experiencing upward momentum, buoyed by a decrease in US Treasury yields and a weakening US Dollar.

This trend underscores the AUD/USD’s resilience and potential for further gains amidst varying economic indicators and central bank activities.

Federal Reserve’s Dovish Stance Boosts AUD

Federal Reserve Chair Jerome Powell’s recent remarks hinted at a potential rate cut, fostering a favourable environment for the AUD/USD.

The dovish statements, particularly from Atlanta Fed President Raphael Bostic and Fed Governor Adriana Kugler, suggest a possible easing of US monetary policy by late 2024, impacting the currency pair positively.

US Economic Data’s Mixed Signals

While the ADP report surpassed expectations with a 184K rise in private hiring, the Services PMIs from S&P Global and ISM showed a slight decline, presenting a mixed economic outlook in the US. These developments, coupled with the declining DXY, have provided a lift to the AUD/USD rate.

Aussie Services Sector Shows Strength

Australian economic indicators, especially the Judo Bank Services PMI, indicate robust service sector activity, with a notable jump to 54.4 in March.

This positive data point, marking continuous improvement, bolsters the AUD/USD price forecast, highlighting the Australian Dollar’s potential for sustained growth in the forex market.

AUD/USD Price Forecast: Technical Outlook

The Australian Dollar (AUD/USD) has shown a modest increase, trading at $0.65969, marking a 0.43% rise. The currency hovers around the pivot point of $0.6585, with immediate resistance levels identified at $0.6611, $0.6634, and $0.6654, hinting at potential upward barriers.

Support levels are positioned at $0.6562, $0.6545, and $0.6525, providing downside protection. The Relative Strength Index (RSI) at 71 indicates a strong bullish sentiment, possibly nearing overbought territory.

The 50-day Exponential Moving Average (EMA) at $0.65 underpins this uptrend, further corroborated by the ‘Three White Soldiers’ candlestick pattern, which traditionally signals a robust upward momentum.

Consequently, the AUD/USD pair presents a bullish outlook above $0.6585, yet a fall below this threshold could lead to significant bearish activity.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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