empty
16.12.2024 04:21 PM
AUD/USD: Can the Pair Rise in the Near Future?

This image is no longer relevant

Today, the AUD/USD pair is attracting some buyers amid modest weakness in the US dollar. However, spot prices remain near the more than one-year low reached last Friday.

This image is no longer relevant

This image is no longer relevant

Key Factors Influencing AUD/USD

  • Support from Weaker USD:The US dollar starts the week on a softer note, reflecting a modest decline in US Treasury bond yields. This remains the primary factor offering some support to the AUD/USD pair.
  • Headwinds for AUD:A dovish bias from the Reserve Bank of Australia (RBA), coupled with ongoing economic challenges in China, acts as a headwind for the Australian dollar. Additionally, expectations of a less dovish stance from the Federal Reserve support dollar bulls, suggesting that the path of least resistance for spot prices continues to be downward.
  • Market Sentiment on the Fed:Investors appear convinced that the US Federal Reserve may slow the pace of its rate-cutting cycle due to stalled progress in reducing inflation to the 2% target. This conviction has driven the yield on 10-year US Treasury bonds to a three-week high, underpinning the positive outlook for the US dollar.
  • Geopolitical and Trade Risks:Geopolitical risks and concerns over a potential trade war between the US and China also favor the US dollar as the safest and most reliable currency. These factors call for caution before opening new long positions in the AUD/USD pair.

FOMC Meeting as a Crucial Catalyst

Traders should refrain from aggressive positioning ahead of the Federal Open Market Committee (FOMC) meeting results scheduled for Wednesday. While the Fed is widely expected to lower borrowing costs by 25 basis points, it may adopt a more cautious stance regarding further rate cuts.Focus will be on the accompanying monetary policy statement and Fed Chair Jerome Powell's remarks during the post-meeting press conference, which are expected to influence demand for the US dollar and provide fresh momentum for the AUD/USD pair.

Technical Outlook

  • Bearish Momentum Persists:Daily chart oscillators remain firmly in negative territory and are far from oversold levels, suggesting that the path of least resistance for the AUD/USD pair remains downward.Further declines could bring the pair closer to recent lows, with any recovery likely facing resistance from persistent bearish sentiment.

Traders are advised to closely monitor upcoming Fed communications for directional cues in the pair.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Gold is declining below the $3300 level today. U.S. PCE data met expectations. A shift in trade flows is helping the U.S. dollar regain positive momentum. This is also undermining

Irina Yanina 17:37 2025-05-30 UTC+2

Inflation Is Almost Under Control

While the euro continues to hold its ground against the dollar, European Central Bank (ECB) Governing Council member Fabio Panetta indicated during an interview today that inflation in the eurozone

Jakub Novak 13:40 2025-05-30 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is attempting to regain positive momentum today, though traders remain cautious ahead of the key U.S. Personal Consumption Expenditures (PCE) Price Index release. As a preferred inflation

Irina Yanina 13:22 2025-05-30 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair continues to struggle to recover after rebounding from the 1.1200 level reached earlier, showing a moderately negative bias, although the decline remains limited. The U.S. dollar

Irina Yanina 13:19 2025-05-30 UTC+2

Legal Disputes Between Trump and Companies Over Tariffs Will Negatively Impact Markets (There Is a Likelihood of Continued Decline in Bitcoin and Litecoin Prices)

Global markets are significantly influenced by events occurring in the United States, where both political and economic spheres continue to swing like a pendulum. Earlier this week, after the U.S

Pati Gani 11:11 2025-05-30 UTC+2

More Time is Needed

Dallas Federal Reserve Bank President Lorie Logan indicated yesterday that it might take some time before policymakers understand how the economy will react to tariffs and other policy changes

Jakub Novak 10:53 2025-05-30 UTC+2

The ECB Should Not Delay Rate Cuts

While the euro is trying to regain its monthly highs after a fairly significant correction seen this week, a survey of several economists shows that the European Central Bank

Jakub Novak 10:49 2025-05-30 UTC+2

Markets Demand an Appeal

The S&P 500 started the day strong but ended on a downbeat note. Initially buoyed by the U.S. Court of International Trade's ruling that the White House's tariffs were illegal

Marek Petkovich 10:33 2025-05-30 UTC+2

What to Pay Attention to on May 30? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are set to be released on Friday, but none are deemed particularly significant. In Germany, the inflation report for May will be released, with expectations

Paolo Greco 06:51 2025-05-30 UTC+2

GBP/USD Overview – May 30: Justice Has Prevailed, but for How Long?

The GBP/USD currency pair closed below the moving average line on Thursday, and the dollar strengthened for three consecutive days. However, everything changed in the second half

Paolo Greco 03:51 2025-05-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.