Audusd rises as traders eye economic indicators and potential US Fed decisions

AUDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.43%	27.7 Pips
Week to-date	0.16%	10.5 Pips
May	0.8%	51.1 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)

What happened lately

In Australia, the dwelling approvals for March experienced a significant decline of -8.8%, a stark deviation from the previous adjusted figure of -0.2%. This data, released by the Australian Bureau of Statistics, indicates a substantial drop in the residential construction sector. The construction industry plays a crucial role in the Australian economy, and such a decrease could indicate waning confidence or economic challenges affecting housing demand. Meanwhile, the inflation rate, as measured by TD Securities for the 12 months up to April, climbed to 3.3%, a rise from 2.8% in March. This increase suggests upward pressure on prices, potentially due to factors such as supply chain disruptions or rising commodity prices, and might invoke further discussions on monetary policy adjustments.

On the currency front, the AUDUSD pair saw a 0.43% rise, concluding at 0.64888. The pair’s movement seems to be in consolidation, potentially reflecting the market’s anticipation of major economic news, particularly from the US. The upcoming USD Federal Reserve Interest Rate Decision is a high-impact event that could significantly influence currency dynamics. Decisions on interest rates typically affect monetary policy expectations and exchange rates. If the Federal Reserve opts for an interest rate hike, it could strengthen the USD relative to the AUD, potentially leading to a depreciation of the AUDUSD pair. Conversely, if the rates remain unchanged or are reduced, the AUD might hold its ground or appreciate slightly against the USD, especially if the Australian economic parameters are stable or improving. In light of these factors, traders will be closely watching both the Australian economic indicators and US Federal policies to gauge the likely trajectory of the AUDUSD.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Tuesday rose 0.43% to 0.64888. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.64503 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.65014 or trades above daily pivot 0.64759. Break above could target R1 at 0.65143. While to the downside, we are looking at 0.64503 (S1) and daily low of 0.64374 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.65014 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is mixed as compared to the prior week.

Key levels to watch out:

#AUDUSD Trending on Twitter

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