AUD/USD sees play into the low side, 0.6540 proving a sticky level – Crypto News – Crypto News
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AUD/USD sees play into the low side, 0.6540 proving a sticky level – Crypto News

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  • The Aussie is on the low side, but tussling with the US Dollar on Wednesday.
  • Market sentiment soured on US data releases, dragging the AUD into lower bids.
  • Aussie PMI figures due in the early Thursday market session.

The AUD/USD is wobbling on Wednesday, grinding around the 0.6540 level as market sentiment pushes and pulls the US Dollar (USD), leaving the Aussie (AUD) hung up in the middle of the tug-of-war.

Reserve Bank of Australia (RBA)  Governor Michele Bullock hit newswires early Wednesday, highlighting that inflation remains a challenge for Australia, with price pressures consistently on the high side. The RBA is struggling to reign in inflation with policy measures without hampering the Australian domestic economy.

RBA’s Bullock: More substantial monetary policy tightening is right response

On the US data side, US Initial Jobless Claims came in below expectations, printing at a five-week low of 209K versus the expected 225K. Continuing Jobless Claims also declined to 1.84 million.

US weekly Initial Jobless Claims decline to 209K vs. 225K expected

Overall market volatility is on the high side for the mid-week as investors grapple with the rate cycle outlook. USD consumers are bracing for long-running inflation to overshoot the Federal Reserve’s (Fed) target of 2%, according to the University of Michigan’s (UoM) 5-year Consumer Inflation Expectations Survey for November. The UoM’s consumer inflation outlook sees 5-year inflation at 3.2%, above the Fed’s target band, and investors are having to once again readjust their outlook on when they can expect the Fed to begin cutting rates.

AUD/USD Technical Outlook

The AUD/USD kicked Wednesday trading off with a dip into 0.6527 before rallying back towards the day’s high bids near 0.6570, and the pair is struggling near the 0.6540 level heading towards Wednesday’s market close.

Yesterday’s swing high into 0.6589 and subsequent decline sees a technical rejection from the 200-day Simple Moving Average (SMA) firming on the charts, and the next stage for sellers will be to drag the AUD/USD back down into the last swing low near 0.6350.

AUD/USD Daily Chart

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