Daily Price Outlook
Early Wednesday, AUD/USD bears took a break around mid-0.6700s, as traders awaited a speech from Reserve Bank of Australia (RBA) Governor Philip Lowe. The RBA paused its rate hike trajectory and satisfied sellers the previous day by maintaining its current monetary policy with a benchmark rate of 3.60%. The Australian central bank attributed the recent decline in Australian inflation and retail sales data to justify the status quo while also acknowledging the possibility of further monetary tightening.
Russian Foreign Minister Raises Fears of Escalating Moscow-Brussels Tussle
Meanwhile, the US dollar's reserve currency status has been challenged, contributing to a risk-on mood in the market. Bloomberg reported that the Chinese yuan surpassed the US dollar as the most traded currency in Russia in February, with the gap continuing to widen in March. Brazil and China also agreed to pause the US dollar's usage as an intermediary in trade transactions. Furthermore, Russian Foreign Minister Sergei Lavrov raised concerns about escalating tensions with Brussels and indicated that Moscow would deal with Europe more harshly if necessary.
US-China Tension Continues as Beijing Criticizes Meeting Between Taiwan President and US House Speaker
The ongoing US-China tension remains a topic of discussion as well. On Tuesday, Taiwan President Tsai Ing-wen met with US House Speaker Kevin McCarthy, which drew criticism from China's Consulate General in Los Angeles.
AUD/USD Intraday Technical Levels
Pivot Point: 0.6704
AUD/USD – Technical Outlook
The AUDUSD pair encounters strong resistance at the 0.6780 level, currently displaying a bearish bias due to the negative impact of stochastic indicators, while awaiting positive momentum to help the price break through the aforementioned level and confirm its trajectory towards 0.6920 as the next target.
Consequently, our bullish outlook for today is contingent upon the price remaining stable above 0.6735, as breaking this level will exert pressure on the price to test the 0.6665 region before attempting another rise.
Today's expected trading range lies between the 0.6720 support and 0.6850 resistance levels.
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