Aussie Dollar on the Rise? Here’s What’s Happening
The Australian Dollar (AUD/USD) is holding strong within an upward channel, showing clear signs of bullish momentum.
The Australian Dollar (AUD/USD) is holding strong within an upward channel, showing clear signs of bullish momentum.
Right now, it’s trading at $0.68236, with solid support coming from the 50-day Exponential Moving Average (EMA) at $0.68006. This EMA has been a reliable support level, helping the pair maintain its upward trajectory.
Looking ahead, the next key resistance level is at $0.68390. A break above this could open the door for further gains, with targets at $0.68645 and $0.68892.
However, if the pair struggles to clear these levels, we could see a pullback. On the downside, initial support lies at $0.67885, followed by deeper levels at $0.67647 and $0.67380.
Idea Trading Australian #Dollar / U.S. #Dollar TF H1
Update#Trading #Forex #AudUsd #Gold pic.twitter.com/8RLc8KL3cL— fcogbermudez (@FcoGBermudez) September 22, 2024
Key Technical Indicators:
- The RSI (Relative Strength Index) is sitting at 57.89, which signals that momentum is still bullish, but we’re not quite in overbought territory, so there’s room for more upside.
- The 50-day EMA at $0.68006 is acting as a strong support, keeping the uptrend intact.
PMI Data Insights
Monday’s data releases for the U.S. economy are worth noting for traders keeping an eye on the AUD/USD:
- The Flash Manufacturing PMI came in at 48.6, slightly higher than last month’s 47.9, but still below 50, indicating the sector is in contraction.
- The Flash Services PMI printed at 55.3, down from 55.7, but still solidly in expansion mode.
This mixed data paints an interesting picture for the U.S. economy. Manufacturing continues to struggle, while the services sector remains relatively strong. This divergence adds complexity to the USD outlook, especially as the Federal Reserve weighs its next moves.
He is part of the downfall of Australia, with the devaluation of the Australian dollar, in the 60s, when ministers of finance, and the introduction of gst, as the Aussie $$$ has sat at, 76.5c since 1981, it had a short period, of 89.7c against USA $$$, in 1988, or so
— Koro Kirihi Baker (@BakerKoro) September 23, 2024
Eyes on the RBA Decision
On Tuesday, the focus shifts to Australia with the RBA Cash Rate decision. Markets expect the central bank to hold the rate steady at 4.35%, but the real attention will be on the RBA Rate Statement, which could provide clues about the bank’s future policy direction.
With inflation still a concern and global growth slowing, the RBA’s tone could sway market sentiment.
Final Thoughts
Overall, the AUD/USD remains in a bullish position, with the 50-day EMA continuing to offer strong support. While the U.S. PMI data gives a mixed signal for the USD, the upcoming RBA decision will likely be the key driver for the Australian Dollar in the near term.
A break above $0.68390 could push the pair higher, but traders should watch out for any shifts in tone from the RBA that might trigger a downside correction.
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