Forecast: AUD to USD Exchange Rate Volatility Expected Due to Australian Inflation and Federal Reserve Actions

At Extreme Investor Network, we strive to provide our readers with unique insights and analysis on the stock market, trading, and all things related to Wall Street. In this blog post, we will delve into expert views on China’s economy, the impact of the Fed press conference on the US economic calendar, and the short-term forecast for the AUD/USD currency pair.

Expert Alicia Garcia Herrero recently expressed her disappointment over China’s lack of policy measures, stating that there is a lack of consumer-led growth and market forces mentioned. This sentiment could have implications for the RBA’s rate path as they consider China’s economy in their economic projections.

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Looking at the US economic calendar, all eyes are on the Fed press conference, with Fed Chair Powell’s views on inflation, economic outlook, and interest rate trajectory being crucial. Expert Nick Timiraos from the Wall Street Journal highlighted the importance of Powell’s press conference in signaling a potential rate cut in September. The CME FedWatch Tool gives a 100% chance of a September rate cut, but an unexpectedly hawkish Fed could send the AUD/USD below $0.65.

In terms of the short-term forecast, near-term trends for the AUD/USD depend on Aussie inflation numbers and the outcome of the FOMC Press Conference. Investors should stay vigilant and monitor real-time data, news updates, and expert commentary to adjust their trading strategies accordingly.

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When looking at the AUD/USD price action on the daily chart, the pair is hovering below the 50-day and 200-day EMAs, affirming bearish price signals. A breakout above the $0.65760 resistance level could signal a bullish momentum, while a drop below $0.65 could give the bears control. It’s important to note that the AUD is in oversold territory, with potential buying pressure at the Monday low of $0.65241.

For the latest views and analysis on the forex markets, be sure to stay updated with Extreme Investor Network. Our unique insights and expert commentary can help you navigate the ever-changing world of trading and investing.

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