AUDUSD Bearish Break Opens Door to 0.6350 After
AUDUSD has fallen more than 3 cents lower this month after the reversal above 0.69, and yesterday we saw a bearish break lower.
AUDUSD has fallen more than 3 cents lower this month after the reversal above 0.69, and yesterday we saw a bearish break lower which opens the door for the next support zone. That support zone comes around 0.6350s, which is the lowest level of 2024 so far, however, there are more than 2 months left.
The AUD/USD exchange rate has been on a downward trend in October, losing over 3 cents. This decline is largely driven by the strengthening U.S. dollar and reduced risk appetite for commodity-linked currencies like the Australian dollar. Although the Reserve Bank of Australia (RBA) remains one of the more hawkish central banks, the Australian dollar has been weighed down by China’s underwhelming fiscal and monetary stimulus efforts, which have fallen short of market expectations.
AUD/USD Chart Daily – MAs Have Been Broken
Geopolitical concerns and a less dovish stance from the Federal Reserve have also contributed to the pair’s decline. On the daily chart, several moving averages converged around the 0.6650 level, which had provided key support for the AUD/USD. The pair ended the week just above this level, supported in part by strong employment data from Australia. In the first two days of the week, sellers struggled to push the price below this support zone, but by yesterday, the downward momentum resumed, driving the pair below 0.66.
Australian Manufacturing and Services PMI Reports
AUD/USD Live Chart
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