During Wednesday's trading session, the AUD/USD made an initial attempt to rally but encountered resistance near the 0.68 level. As a result, the currency pair experienced a decline, dropping towards the 50-Day Exponential Moving Average. However, it's important to keep in mind that the Federal Reserve's interest rate decision, scheduled for later in the session, is likely to trigger significant volatility in the market. Currently, the US dollar is displaying erratic movements, with the British pound gaining ground while the Australian dollar and New Zealand dollar are facing declines. This uncertainty begs the question of whether a sustainable trend can be identified.
When it comes to the Australian dollar's outlook, it is expected to continue oscillating back and forth, making it difficult to form a decisive opinion on this currency pair. For short-term range-bound traders, this market may present opportunities. A breach below the 50-Day EMA could potentially lead to further downward movement, targeting the 0.67 level, and potentially even extending towards the 0.66 level. Given the prevailing circumstances, this market requires vigilant monitoring as clarity and certainty appear elusive. Recent inflation figures from the Australian economy were less than favorable, contributing to the Australian dollar's decline. Furthermore, the impending Federal Reserve announcement, guided by Jerome Powell, is anticipated to create fluctuations and impact the market unpredictably.
A closer look at this market reveals its noisiness, and currently, there seems to be little hope for a substantive change in the immediate future. Both the 200-Day EMA and the 50-Day EMA indicators remain essentially flat, reflecting the lackluster attitude of traders towards this currency pair. The Australian dollar is heavily influenced by commodity markets and overall global growth trends. Given the current landscape, short-term range-bound traders might be able to navigate the market's oscillations, but a sustainable directional move seems improbable at the moment.
In conclusion, the Australian dollar is facing uncertainty amidst a volatile trading session.
- The initial rally met resistance, leading to a subsequent decline. The upcoming Federal Reserve interest rate decision is expected to inject further volatility into the market.
- The Australian dollar's outlook remains choppy, making it a market of interest primarily for short-term range-bound traders.
- A breach below the 50-Day EMA could trigger additional downward movement, but overall, certainty remains elusive.
- Monitoring key economic indicators and the Federal Reserve's actions will be necessary in the short term.
Ready to trade our daily Forex forecast? Here’s a list of some of the best Australian forex brokers to check out.
