While the US Dollar is still close to the 99.00 mark It falters to weight on the AUD/USD pair.
US President Biden demanded that Russia be removed from G20.
AUD/USD Price Outlook: Bias is up unless it trades lower than 0.7440. This indicates that a correction has begun.
Although the AUD/USD is moving higher, the rally seems to be stalling as evidenced by Thursday’s price action. It was about to form a Doji candle. This indicates that the tug-of war between bears and bulls has begun, as uncertainty looms. The AUD/USD trades at 0.7510 as of the writing.
In a positive market environment, the greenback remains firm.
Despite the fact that European stocks indexes ended with losses, the market mood in North America was risk-on. The US equity market is rising across the pond. However, the buck shows some resilience to falls as it trades at 98.82 with gains reflected in the US Dollar Index, which is up 0.20%. After Wednesday’s losses the US Treasury yields have resumed their rise with the 10-year Tnote yield at 2.341%.
Market-moving news has not been available on the geopolitical front. The Russia-Ukraine war is still ongoing. At NATO’s two-day summit, Joe Biden, the US President, arrived in Brussels. A senior US official said that Biden stated to NATO that he supports increased NATO troops on eastern front. Biden also called for Russia’s expulsion from the G-20.
Other than this, Fed speakers continue to be headline-grabbing. Charles Evans, Chicago Fed President, said that he was comfortable with 25 bps increases in the Federal Funds rate but is open to 50 bps increases should they be required. Neil Kaskary, Minnesota Fed President, stated earlier that the 10-year Treasury yields are low and highlighted the risk of rate hikes being overdone.
A missing Australian economic docket could leave AUD/USD traders drifting to US data Friday. Nevertheless, traders would be able to access US data via the Pending Home Sales report for February and the Universite of Michigan Consumer Expectations March.
AUD/USD Forecast: Technical outlook
As shown in the daily chart and the 50-day moving mean, which crossed over the 100 DMA, each of them sitting at 0.7223 or 0.7216, respectively, the AUD/USD is biased upward. Nevertheless, the steepness and acceleration toward overbought conditions by the Relative Strength Index, (RSI), may cause the AUD/USD to correct in the short term. The AUD/USD will continue to rise unless it breaks below 0.7440.
The AUD/USD first resistance will be October 28, 2021 at 0.7555. Brute of this would expose 0.7600, then 0.7700.
