The AUD/USD pair maintained its bearish tone through the first half of the European session and was last seen trading near a multi-day low, just below the 0.7100 area.
The bearishness seemed rather unaffected by the Reserve Bank of Australia’s (RBA) hawkish Statement on Monetary Policy, suggesting a further increase in interest rates is needed to restrain inflation.
On the other hand, the US dollar eased a bit from the two-decade high touched earlier this Friday, though did little to impress bullish traders or lend any support to the AUD/USD pair. Fed Chair Jerome Powell had said that policymakers were ready to approve a 50 bps increase at upcoming meetings. Markets expect that the Fed would need to take a more extreme action to curb soaring inflation and are pricing in an additional 200 bps rate hikes for the rest of 2022. This continuous supportive view elevated US Treasury bond yields, which should act as a tailwind for the USD.
Investors and traders, however, seem reluctant to place aggressive bets and preferred to wait for a fresh catalyst from the US NFP report, scheduled for release later during the early North American session. The data is anticipated to be consistent with tightening labour market conditions, which, along with the US bond yields, might influence the USD and provide a fresh volatility to the AUD/USD pair.
AUD/USD is now seen within the .7030-.7210 range. AUD subsequently rose to 0.7267 before plunging to a low 0.7079. For today AUDUSD might trade between .7060 and .7160
This is an article, not financial advice , always do your own research.
If you have any questions, you can write it in the comments below and i will answer them
And please don't forget to support this idea with your like and comment
The bearishness seemed rather unaffected by the Reserve Bank of Australia’s (RBA) hawkish Statement on Monetary Policy, suggesting a further increase in interest rates is needed to restrain inflation.
On the other hand, the US dollar eased a bit from the two-decade high touched earlier this Friday, though did little to impress bullish traders or lend any support to the AUD/USD pair. Fed Chair Jerome Powell had said that policymakers were ready to approve a 50 bps increase at upcoming meetings. Markets expect that the Fed would need to take a more extreme action to curb soaring inflation and are pricing in an additional 200 bps rate hikes for the rest of 2022. This continuous supportive view elevated US Treasury bond yields, which should act as a tailwind for the USD.
Investors and traders, however, seem reluctant to place aggressive bets and preferred to wait for a fresh catalyst from the US NFP report, scheduled for release later during the early North American session. The data is anticipated to be consistent with tightening labour market conditions, which, along with the US bond yields, might influence the USD and provide a fresh volatility to the AUD/USD pair.
AUD/USD is now seen within the .7030-.7210 range. AUD subsequently rose to 0.7267 before plunging to a low 0.7079. For today AUDUSD might trade between .7060 and .7160
This is an article, not financial advice , always do your own research.
If you have any questions, you can write it in the comments below and i will answer them
And please don't forget to support this idea with your like and comment
