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\n Share:<\/span><\/p>\n The AUD\/USD dropped 0.12% daily and extended its substantial losses during the week, which has witnessed the pair traveling from a weekly high of 0.6522 toward a low of 0.6338. At the time of writing, the pair trades at 0.6358.<\/p>\n Some reasons behind the AUD\/USD price action are linked to central banks, with the Reserve Bank of Australia (RBA) hiking rates 25 bps from 4.10% to 4.35%. However, it failed to deliver a hawkish stance, which was the first monetary policy decision headed by Governor Michele Bullock. On Tuesday, that sent the pair into a tailspin, plunging more than 50 pips or 0.81%.<\/p>\n Despite that, dovish remarks by several Federal Reserve members kept the AUD\/USD afloat until Thursday, when Fed Chair Jerome Powell<\/a> was more hawkish than expected. He commented that US central bank policymakers are unsure whether the current monetary policy stance is sufficiently restrictive, emphasizing that they would raise rates if needed. In his speech, he acknowledged that inflation is slowing down but remains above the 2% target.<\/p>\n Given the backdrop, the AUD\/USD failed to extend last week’s uptrend, hampered by fundamentals and market sentiment. In addition to that, a deflationary scenario in China, hurts the prospects of the Aussie (AUD), due to Australia\u2019s dependence on its largest trading partner. A further deterioration of China\u2019s economy would dampen Australia\u2019s prospects, suggesting that further AUD\/USD weakness lies ahead.<\/p>\n The following week, the Aussie\u2019s economic docket would feature NAB Consumer Confidence and jobs data. On the US side, inflation data, unemployment claims, and Fed speaking would provide some clues regarding the US economy’s status.<\/p>\n\n
Australian Dollar struggles as RBA rate hike fails to inspire, while Fed Chair’s remarks bolster the US Dollar<\/h2>\n
AUD\/USD Price Analysis: Technical outlook<\/h2>\n