AUD/USD Price at $0.6661 Amid RBA Rate Hike Talks

During the European trading session, the AUD/USD pair showcased resilience, stabilizing around the 0.6669 level and reaching an intraday peak of 0.6676.

This strength in the pair is primarily due to the hawkish minutes released by the Reserve Bank of Australia (RBA) and a slight weakening of the US Dollar.

RBA Discusses Rate Hikes Amid Persistent Inflation

The RBA’s recent discussions have hinted at further interest rate increases, prompted by ongoing high inflation concerns. This supportive stance has reinforced the Australian dollar, aiding in the pair’s upward movement.

Fed’s Rate Cut Speculations Influence AUD/USD Price

Market sentiment has also been buoyed by speculation that the US Federal Reserve might lower interest rates.

Despite mixed signals from Fed officials indicating a potential hawkish approach, the prevailing market bet leans towards a rate cut in September, with a 61% probability noted by the CME FedWatch tool, a decrease from 65% the previous week. This anticipation of softer US monetary policy continues to underpin the Australian dollar.

Cautious Market Sentiment Amid Global Economic Data

Currently, the AUD/USD pair is trading at $0.66614, marking a slight decline of 0.15% in the 4-hour chart. This modest drop reflects the cautious market sentiment as traders consider global economic indicators and central bank policies.

Key technical levels for the AUD/USD price forecast include a pivot point at $0.6650, which serves as a crucial benchmark. Resistance levels are set at $0.6682, $0.6711, and $0.6746, while support levels are noted at $0.6618, $0.6586, and $0.6559.

These levels are pivotal in defining potential price barriers and support zones. The Relative Strength Index (RSI) stands at 43, suggesting a neutral but slightly bearish market mood.

Additionally, the 50-day Exponential Moving Average (EMA) at $0.6676 currently positions the price below this marker, hinting at a bearish short-term trend but leaving room for upward adjustments if the price surpasses this average.

Conclusion:

Trading Strategy for AUD/USDGiven the current market conditions and central bank policies, the suggested trading strategy is to initiate a buy position if the AUD/USD price exceeds $0.66505, targeting a take profit at $0.66923 and setting a stop loss at $0.66284.

This approach is aligned with observing critical technical levels and responding to shifts in economic data and policy developments.

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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