50 Moving Average

AUD/USD remains under pressure as the U.S. dollar benefits from rising Treasury yields and stronger expectations for another Federal Reserve rate hike. Traders are watching the 0.7000 support area, U.S.-China trade talks and next week’s Reserve Bank of Australia meeting for the pair’s next directional signal.

AUD/USD is trying to regain its footing after a sharp post-Fed decline, with traders weighing a stronger Greenback against expectations for further Reserve Bank of Australia tightening. A falling-wedge breakout and key resistance levels around 0.7145, 0.7180 and 0.7205 now frame the near-term recovery test.

AUD/USD gained ground on Friday after a sharp midweek decline triggered by a more hawkish Federal Reserve and renewed demand for the Greenback. The pair is now testing whether a technical breakout and rising Reserve Bank of Australia rate expectations can sustain a recovery.

AUD/USD remained under pressure after stronger US producer price data lifted expectations for a Federal Reserve rate hike next week. Traders are now focused on US consumer inflation data, with key support at 0.7145 and 0.7120 in view.

The Australian dollar is trading near a three-month high against the U.S. dollar after hotter-than-expected domestic inflation strengthened the case for another Reserve Bank of Australia rate hike. Fed Chair Kevin Warsh’s Jackson Hole remarks now stand as the next major catalyst for AUD/USD momentum.