Trading for the AUD/USD pair remained relatively stable on Friday. Signals from both the Federal Reserve and the Reserve Bank of Australia suggested hawkish policies, which kept the US dollar within a limited range, despite a slight dip. As of now, the pair is sitting around 0.7011 and appears set for weekly losses.
This week, both the Fed and RBA decided to keep interest rates steady but hinted at the possibility of future rate hikes, aiming to control inflation and reach their respective targets.
On a different note, decreasing tensions in the Middle East have somewhat bolstered risk-sensitive currencies like the Australian dollar. Nevertheless, significant gains could be stunted as traders are looking for new economic data to provide insight on interest rate trends in both countries.
Next week’s economic agenda includes Australia’s Consumer Price Index and labor market figures, along with the US Personal Consumption Expenditures price index and the final gross domestic product for the first quarter.
Traders will also keep an eye on the preliminary global Purchasing Managers Index survey and the interest rate decisions from the People’s Bank of China. Given Australia’s close economic ties with China, the Australian dollar is particularly responsive to any Chinese economic updates.
Technical analysis:
In terms of technical analysis, the daily chart indicates a bearish outlook for AUD/USD in the short term, as the price remains below the Bollinger middle band aligned with the 20-day simple moving average, currently near 0.7091. While the pair stays well above the 200-day SMA at 0.6852, the inability to surpass the 20-day SMA implies ongoing seller dominance. The Relative Strength Index at 37 continues to show bearish momentum, remaining beneath the neutral 50 mark. Additionally, an Average Directional Index close to 31 suggests a strengthening downtrend.
On the upside, initial resistance is presented at the 20-day SMA and Bollinger midline near 0.7091, while the upper Bollinger band around 0.7220 serves as the next significant barrier. Conversely, immediate support is seen near the lower Bollinger Band around 0.6963, followed by the 200-day SMA at 0.6852. A notable drop below this last level would likely reinforce a broader bearish perspective.
USD price today
The following table outlines the percentage change of the US dollar (USD) against major currencies today. The dollar shows the strongest performance against the Swiss franc.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.17% | -0.22% | -0.08% | 0.25% | 0.00% | 0.23% | 0.28% | |
| EUR | 0.17% | -0.05% | 0.11% | 0.42% | 0.17% | 0.39% | 0.45% | |
| GBP | 0.22% | 0.05% | 0.15% | 0.46% | 0.23% | 0.45% | 0.51% | |
| JPY | 0.08% | -0.11% | -0.15% | 0.31% | 0.10% | 0.30% | 0.35% | |
| CAD | -0.25% | -0.42% | -0.46% | -0.31% | -0.20% | -0.02% | 0.03% | |
| australian dollar | -0.00% | -0.17% | -0.23% | -0.10% | 0.20% | 0.21% | 0.28% | |
| new zealand dollar | -0.23% | -0.39% | -0.45% | -0.30% | 0.02% | -0.21% | 0.04% | |
| swiss franc | -0.28% | -0.45% | -0.51% | -0.35% | -0.03% | -0.28% | -0.04% |
This chart indicates the percentage change between major currencies, with the left column representing the base currency and the top row the quote currency. Selecting USD from the left and looking toward the JPY in the row shows the percentage change reflecting USD (base)/JPY (estimate).
