The AUD/USD pair extends its winnings streak for the fifth trading day on Tuesday and revisits the monthly high of 0.6380. The Aussie pair performs strongly in the last few trading days even though the intensifying trade war between the United States (US) and China has dampened the outlook of the Australian economy.
Historically, the Australian Dollar (AUD) underperforms when the economic outlook of China deteriorates, given the high dependence of the Australian economy on its exports to the Asian giant.
US President Donald Trump has declared a 90-day pause on the execution of reciprocal tariffs for all of his trading partners, except China.
The world's second largest nation retaliated against Trump's reciprocal tariffs by imposing additional duties on goods imported from the US.
Meanwhile, the US Dollar (USD) struggles to hold its recent lows as financial market participants expect that Trump's economic policies are painful for the US economy in the near term.
Trump's tariff policies are expected to boost inflationary pressures and slow down economic growth. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades cautiously slightly above the three-year low of 99.00.
AUD/USD extends its upside to near the March 18 high of 0.6390, the highest level seen in over a month. The near-term outlook of the pair is upbeat as it holds the 20- and 50-day Exponential Moving Averages (EMAs), which trade around 0.6244 and 0.6270, respectively.
The 14-day Relative Strength Index (RSI) rises to near 58.00 after a V-shape recovery from below 40.00. Such a scenario indicates a strong bullish reversal.
More upside would appear if the pair breaks above the March 18 high of 0.6390. The scenario will open doors for the pair towards the December 5 high of 0.6456 and the round-level resistance of 0.6500.
On the flip side, a downside move below the March 4 low of 0.6187 will expose the pair towards the February low of 0.6087, followed by the psychological support of 0.6000.
Source: FXStreet
The Australian dollar weakened slightly on Thursday after strengthening in the previous session. The AUD/USD pair still has room to recover as the US dollar faces pressure following weaker-than-expect...
The Australian Dollar (AUD) loses ground on Wednesday for the second consecutive day. The AUD/USD pair struggles as the US Dollar (USD) extends its gains despite the United States (US) Nonfarm Payroll...
The Australian Dollar (AUD) is under pressure against the US Dollar (USD) on Thursday, with AUD/USD down almost 0.50%, trading near 0.6510 at the time of writing. The pullback reflects broad Greenback...
The Australian dollar was little changed to around $0.654 on Thursday, holding its recent gains, supported by stronger-than-expected trade balance figures. Australia's goods trade surplus widened to A...
The Australian dollar was little changed to around $0.652 on Wednesday, after a 0.5% drop in the previous session, as strength in the US dollar offset upbeat domestic GDP data. The greenback held firm...
Brent oil prices strengthened on Friday (September 12th), with the last price recorded at $66.54 per barrel. This increase reflects positive sentiment in the energy market amid expectations of an interest rate cut by the Federal Reserve, which...
Oil prices held steady on Friday (September 12th) as concerns about oversupply and weakening U.S. demand offset the risk of supply disruptions stemming from conflicts in the Middle East and Ukraine. Brent crude futures rose 11 cents, or 0.2%, to...
Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this week. Softer labor market data overshadowed a...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...