The Australian Dollar (AUD) grapples to secure its previous session's gains on Wednesday. However, the AUD/USD pair faced pressure as the US Dollar (USD) strengthened with rising Treasury yields. Market risk aversion has increased due to the growing likelihood of Donald Trump winning the presidency, adding to the selling pressure on US Treasury bonds.
The downside for the AUD could be restrained due to hawkish sentiment around the Reserve Bank of Australia (RBA), bolstered by the positive employment data. Further support for the Aussie Dollar came from China's recent rate cuts, as China remains Australia's largest trading partner.
The US Dollar gains ground as recent signs of economic resilience and concerns about a potential resurgence of inflation have diminished the chances of a significant rate cut by the Federal Reserve in November.
According to the CME FedWatch Tool, there is a 91% probability of a 25-basis-point rate cut, with no expectation of a larger 50-basis-point cut.
The AUD/USD pair trades around 0.6670 on Wednesday, with technical analysis of the daily chart pointing to a short-term bearish outlook as the pair remains below the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is below 50, further supporting the bearish sentiment.
On the downside, the AUD/USD pair could test its six-week low of 0.6622, last seen on September 11. The next key support is at the psychological level of 0.6600.
Resistance is expected at the nine-day EMA at 0.6698, followed by the 50-day EMA at 0.6733. A break above these levels could pave the way for a move toward the psychological resistance of 0.6800.
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Euro.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.00% | -0.00% | 0.46% | 0.01% | 0.00% | -0.02% | 0.08% | |
EUR | 0.00% | 0.02% | 0.48% | 0.04% | 0.03% | 0.02% | 0.11% | |
GBP | 0.00% | -0.02% | 0.45% | -0.00% | 0.02% | -0.02% | 0.14% | |
JPY | -0.46% | -0.48% | -0.45% | -0.45% | -0.46% | -0.48% | -0.32% | |
CAD | -0.01% | -0.04% | 0.00% | 0.45% | -0.00% | -0.01% | 0.14% | |
AUD | -0.01% | -0.03% | -0.02% | 0.46% | 0.00% | -0.01% | 0.14% | |
NZD | 0.02% | -0.02% | 0.02% | 0.48% | 0.01% | 0.00% | 0.15% | |
CHF | -0.08% | -0.11% | -0.14% | 0.32% | -0.14% | -0.14% | -0.15% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
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