AUDUSD Technical Analysis – Key levels in play | Forexlive

US:

• The Fed hiked by 25 bps as
  expected and kept everything unchanged at the last meeting.
• Fed Chair Powell reaffirmed their data dependency
  and kept all the options on the table.
• The US CPI this
  week came in line with expectations, so the market’s pricing remained roughly
  the same.
• The labour market
  displayed signs of softening although it remains fairly solid.
• Last week the ISM Services PMI and Jobless Claims
  surprised to the upside, which point to a resilient economy overall.
• Yesterday, we got yet another beat in Jobless Claims followed
  by strong Retail Sales and PPI data.
• The Fed members are leaning more towards a pause in
  September and the next decision will still be dictated by the economic data.
• The market doesn’t expect the Fed to hike at the
  September meeting and there’s just a 33% chance of a hike in November, although
  that can change if the data keeps on running hot.

Australia:

• The
  RBA kept its cash rate unchanged as widely expected as they are
  seeing signs that the economy is indeed slowing and that will help to return
  inflation back to target.
• The
  data is supporting the RBA’s stance as the Australian jobs, wages and inflation data all remain lacklustre.
• The
  Australian PMIs also missed expectations remaining
  in contraction.
• RBA
  Governor Lowe in his speech reaffirmed that if inflation remains sticky, they
  will have to tighten more.
• The
  market expects the RBA to hold rates steady at the next meeting as well.

AUDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that AUDUSD remains
in a consolidation phase as the price is stuck between the support at
0.6370 and the resistance at 0.6500. The price is eyeing the resistance at the
moment, and we can expect to find sellers stepping in there with a defined risk
above the resistance to target the support.

AUDUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that on this
timeframe the pair is in an uptrend as the price has been printing higher highs
and higher lows with the moving averages being
crossed to the upside. We can expect the buyers to come into the market if we
see a pullback and target the resistance.

AUDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that
AUDUSD has been trading around key levels and the recent breakout to the upside
opened the door for a rally into the 0.6500 resistance. If the price pulls back
into the resistance turned
support at 0.6450, we can expect the buyers to pile in with a
defined risk below the support to target the resistance. The sellers, on the
other hand, will want to see the price breaking below the support to pile in
and target the 0.6370 support.

Upcoming Events

Today the only notable
report left to be released for this week is the University of Michigan Consumer
sentiment survey. Consumer sentiment might have deteriorated given higher
energy prices and that might have filtered to higher inflation expectations.