AUD/USD nears cycle low after Powell’s hawkish remarks

• AUD/USD fell more than 0.50%,  to a day-to-day low shut to 0.6380.
• Jerome Powell opened the door to 1 other hike in this tightening cycle.
• Rising US yields fabricate the USD function ardour.

At the tip of the week, the USD gained ground in opposition to its opponents, mainly driven by the Federal Reserve’s (Fed) chairman, Jerome Powell, at the Jackson Gap Symposium. On the Aussie aspect, no relevant data or occasions are on the docket in Friday’s session.

Jerome Powell’s speech at the Jackson Gap Symposium sounded hawkish. He acknowledged that the economy didn’t chilly down as anticipated and that the Fed will proceed “rigorously” for the next selections. He then pointed out that “there may be not a procedure to understand what the neutral fee would be,” and markets are having a bet increased odds of 1 other hike in 2023.

Per the CME FedWatch instrument, the percentages of a 25 foundation functions (bps) hike in November rose to almost 44% vs. 33% per week prior to now. The chances of a quit dwell excessive in September whereas shoppers are having a bet on cuts in June-July 2024.

As a response, the US Treasury yield rose, with the 2,5 and 10-one year rates rising to 5.07%, 4.46% and 4.25%, respectively, giving the USD a boost.

AUD/USD Ranges to glance

In holding with the day-to-day chart, it’s evident that AUD/USD leans in direction of a bearish outlook in the brief time duration. The Relative Energy Index (RSI) remains below its midline in negative territory, showcasing a southward slope. Similarly, the Transferring Moderate Convergence Divergence (MACD) displays crimson bars, emphasising the strengthening bearish momentum for AUD/USD. Also, the pair is below the 20,100 and 200-day Easy Transferring Averages (SMAs), implying that the bears retain modify on a broader scale.

Strengthen ranges: 0.6380, 0.6370 (cycle low), 0.6350.

Resistance ranges: 0.6435, 0.6480, 0.6500 (20-day SMA).

AUD/USD On daily foundation chart

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