Forecast: Australian Dollar Prepares for Impact of Trade and China PMI Reports on AUD/USD Exchange Rate

Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the stock market, trading strategies, and Wall Street trends. Today, we are diving into the recent comments made by Fed Chair Powell regarding the US labor market and how it could impact the AUD/USD currency pair.

During the FOMC press conference on Wednesday, July 31, Fed Chair Powell expressed his concerns about the potential deterioration of labor market conditions. Powell emphasized the importance of not letting the labor market conditions worsen and highlighted the ongoing normalization of these conditions. This suggests that a significant decline in the labor market could prompt the Fed to implement more aggressive interest rate cuts in the future.

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For traders looking at the AUD/USD pair, the short-term forecast appears bullish, with factors such as economic data from China, US labor market statistics, and Fed communications influencing the currency pair’s movements. Keep an eye on China’s PMI data, as weaker-than-expected figures could impact demand for the Aussie dollar. Additionally, any signs of softer US labor market conditions could lead to bets on multiple Fed rate cuts, potentially benefiting the AUD/USD.

On the technical side, the AUD/USD remains below the 50-day and 200-day EMAs, signaling bearish price trends. A breakout above the $0.65760 resistance level could propel the pair towards the 200-day EMA, with further upside potential towards the 50-day EMA. Conversely, a break below $0.65 could lead to a decline towards the $0.64582 support level.

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As traders navigate through the volatility in the forex markets, staying informed with real-time data, news updates, and expert analysis is crucial for adjusting trading strategies. At Extreme Investor Network, we provide you with the latest views and insights to help you manage your exposures effectively.

Keep an eye on upcoming economic data releases from China and the US, as they are likely to drive AUD/USD price action in the near term. By staying informed and proactive, you can position yourself for success in the dynamic world of trading. Stay tuned to Extreme Investor Network for more in-depth analysis and expert commentary on the latest market developments.

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