Home Forex Markets AUD/USD Outlook: Hawkish RBA challenges USD!These technical levels deserve attention

AUD/USD Outlook: Hawkish RBA challenges USD!These technical levels deserve attention

by WOOWinvest
0 comment

The Australian central bank’s monetary policy statement announced that the exercise price of the Australian dollar/dollar expiry option may provide some hints for investors; the IG customer sentiment index shows that the outlook for the Australian dollar/dollar is still unclear.

AUD Fundamental Outlook

The RBA released its monetary policy statement, and the following are the key issues:

1. Inflation expectations have been raised, and inflation is expected to remain above the 2%-3% range.

2. There is no need to worry about the weakening of the Australian dollar, which is currently trading around similar levels in early 2022 and before the epidemic.

3. The labor market is tight and the unemployment rate is low.

Australia’s unemployment rate

Chart source: RBA official website

4. Rate hikes are needed to curb inflationary pressures

5. Downgrade of China’s economic growth forecast

Taking into account the above points, the Australian dollar has received a lot of upside support; if China’s economic growth resumes, then AUD/USD may lead the future. Few currencies have shown strong resilience against the dollar, and even fewer have solid economic fundamentals below aggressive rate hikes.

The plans for the following options expiring today focus on exercising at 0.7200 and 0.7300, respectively. This could strengthen the Aussie; the market tends to move towards higher strike levels as expiration approaches (this is known as a rule of thumb).

AUD/USD: 0.7000 (524 million), 0.7100 (908 million), 0.7200 (972 million) and 0.7300 (227 billion)

AUD/USD Outlook: Hawkish RBA challenges USD!These technical levels deserve attention

AUD/USD technical analysis

The daily AUD/USD chart above shows the bears making a third attempt to test the psychological support area of ​​0.7000 since December 2021. Given the dollar’s buying and the improbability of a quick recovery in China’s economic growth, that’s a real possibility in the short term. I will be looking for confirmation of a break above 0.7183 (61.8% Fibonacci level) to confirm the resumption of downside momentum. If the pair approaches the 0.7183 resistance level, this could be a good place for the bears to re-enter.

key resistance:

200-day SMA line (grey line) 0.7183

Key support:

(Translated by Ashley by Warren Venketas)

The content on this page is for general market commentary only and may not constitute investment advice of any kind (tax, legal, accounting). This article does not constitute an invitation or recommendation for direct investment in specific financial products. The content is for reference only. Readers should not rely on the information in this document, nor should its actions and omissions be relied upon. We are not responsible for the results of any person’s actions or omissions based on this article. We make no warranties as to the accuracy of the content provided or the adequacy of the information. This article is not intended for distribution within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan for this purpose), except as permitted by the applicable laws of the People’s Republic of China.

Copyright Notice: Except for the purpose of viewing the information on this website, or as permitted by applicable law or these terms and conditions, no one may copy, use, upload, link, or publicly perform in any way to third parties without our specific written permission , publish or transmit any information or content on this website. We reserve the right to further investigate the legal responsibility of the relevant actors for the infringement of unauthorized reprinting. If you have business cooperation needs such as market promotion and resource exchange, please contact us.

element inside the element. This is probably not what you meant to do! Load your application’s JavaScript bundle inside the element instead.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy