Welcome to Extreme Investor Network, where we provide you with unique insights and updates on the stock market, trading, and all things Wall Street. Today, we are diving into the latest trends and forecasts for the AUD/USD pairing, focusing on the impact of economic indicators on this currency pair.
The US Core PCE Price Index is a key factor to consider when analyzing the AUD/USD pairing. Any downward trends in personal income and spending could spark speculation about potential Fed rate cuts in late 2024. This, in turn, could drive the AUD/USD towards the $0.70 mark. On the other hand, positive numbers in Services PMI, Jobless Claims, and the Core PCE Price Index may reduce expectations of Fed rate cuts, potentially pulling the AUD/USD below $0.67.
Aside from the numbers, pay close attention to speeches from Federal Reserve officials, particularly Fed Chair Powell. His comments could significantly influence market sentiment and the direction of the AUD/USD.
In the short term, the AUD/USD trend will be heavily influenced by inflation data and the RBA press conference. Should US inflation numbers disappoint and the RBA express concerns about premature rate cuts, we may see the Aussie dollar strengthen against the greenback. Stay informed with our latest updates and insights to make informed decisions in the Forex markets.
On the price action front, the AUD/USD currently sits comfortably above the 50-day and 200-day EMAs, signaling a bullish trend. Look for a break above the September 19 high of $0.68390 to potentially pave the way for a move towards $0.69 and beyond. Conversely, a break below the $0.68006 support level could lead to a drop towards $0.67500 and further down to $0.67050.
With a 14-period Daily RSI reading of 61.56, the AUD/USD may have room to climb towards $0.68500 before reaching overbought territory. Keep an eye on the RBA interest rate decision and economic indicators from both Australia and the US for potential market-moving events.
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