Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

AUD/USD Runs Into Key Resistance

Published 10/01/2019, 09:24
Updated 09/07/2023, 11:32

After the flash crash that look place a week ago, AUD/USD has been on the rise due to a combination of two major drivers. First, the Aussie is benefiting from improved risk sentiment amid some progress in US-China trade talks. By the way, China’s commerce ministry reported that the country is in close contact with the US over next stage of talks. Such positive rhetoric could further support high-yielding currencies including AUD.

Second, the greenback continues to lose ground amid a more ‘dovish’ Fed tone. The FOMC meeting minutes confirmed that the central bank shifts towards a more cautious stance in policy tightening, while a number of Fed officials signal the need to make a pause in hiking. As a result, investors continue to price out rate hikes in 2019, which makes the greenback struggle nearly across the board.

Even as the buck is on the defensive, further ascent in the AUD/USD pair is under question. The price has run unto an important local resistance around 0.72 and could retreat from the current levels if crude oil prices remain under a local pressure – Brent has slipped from highs above $61 and now tries to stay above the $60 hurdle. To break the 0.72 figure, the Aussie needs a fresh catalyst.

Latest comments

Katerina what you think about AUD/INR USD/INR
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.