Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the Stock Market, trading, and all things related to Wall Street. Today, we are diving into the recent comments by Powell and their potential impact on the US dollar, as well as a short-term forecast for AUD/USD.
Powell’s comments are expected to carry more weight than Monday’s US economic data, with economists predicting modest increases in the Chicago PMI and Dallas Fed Manufacturing Index. This suggests that the US dollar could be influenced by Powell’s remarks in the near future.
When it comes to the AUD/USD pair, upcoming trends may hinge on a variety of factors including China’s policy decisions, Aussie data releases, and US labor market statistics. Should Beijing implement further policy easing and Australian data show positive signs, expectations of a rate cut by the RBA in Q4 2024 may diminish.
On the other hand, weaker US labor market data and support for a November Fed rate cut of 50 basis points could narrow the interest rate differential between the US and Australia, potentially pushing the AUD/USD towards $0.70. It’s crucial for investors and traders to stay on top of central bank signals and economic indicators to stay ahead of the curve.
In terms of technical analysis for AUD/USD, the pair remains above the 50-day and 200-day EMAs, indicating bullish momentum. A potential move towards the $0.69500 level could pave the way for a breakout towards $0.70. However, a drop below $0.68500 could signal a downward trend towards the $0.68006 level.
With the Daily RSI reading at 65.13, there is room for the Aussie dollar to climb higher before entering overbought territory. Traders should keep an eye on central bank commentary and economic data from China to gauge the future movements of the AUD/USD pair.
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