AUD/USD Price Analysis – Nov 26, 2024
Daily Price Outlook
During the European trading session, the AUD/USD pair is struggling to break its bearish trend, remained under pressure around the 0.6490 level and hitting a low of 0.6434. The main reason behind its decline is the growing concerns over the US-China trade tensions.
It should be noted that US President-elect Donald Trump recently warned about imposing a 25% tariff on goods coming from Mexico and Canada, along with an extra 10% tariff on Chinese imports. This has made investors more cautious, especially when it comes to riskier assets, and has weighed heavily on the Australian Dollar.
Despite the Reserve Bank of Australia’s (RBA) hawkish stance, the AUD has failed to gain momentum. Besides this, some buying in the US Dollar (USD) has added to the bearish outlook for the AUD/USD pair in the near term.
Looking forward, traders are hesitant to make big moves, waiting for the FOMC meeting minutes to get a better idea of future rate cuts.
US Dollar Strengthens Amid Trade Policy Concerns and Slower Fed Rate Cuts, Weighing on AUD/USD
On the US front, the broad-based US dollar has been gaining strength due to concerns around US President-elect Donald Trump's trade policies. Trump threatened to impose a 25% tariff on imports from Mexico and Canada and an additional 10% on Chinese goods. These threats have reduced investors' interest for riskier assets, weighing on the Australian Dollar (AUD).
Looking ahead, traders seem cautious, waiting for the FOMC meeting minutes to get a clearer picture of potential rate cuts. Meanwhile, the US dollar gained traction as traders anticipated slower interest rate cuts from the Federal Reserve.
Scott Bessent’s nomination as US Treasury Secretary briefly eased concerns that Trump’s policies could reignite inflation and force the Fed to cut rates aggressively. As a result, US Treasury yields rose, attracting more buyers to the USD.
Therefore, the US dollar's strength, fueled by concerns over Trump's trade policies and expectations of slower Fed rate cuts, has weighed on the Australian Dollar (AUD). This has contributed to a bearish outlook for the AUD/USD pair, pushing it lower.
AUD/USD – Technical Analysis
The AUD/USD pair is trading at $0.64901, down 0.20%, as bearish sentiment persists below the pivot point at $0.65456. Price action remains constrained under the 50-day EMA, currently at $0.65068, which reinforces the downside bias.
Immediate support is located at $0.64497, with further levels seen at $0.64154 and $0.63763, suggesting potential for further declines if selling pressure intensifies.
On the upside, resistance lies at $0.65918 and $0.66399, which align with key technical levels that could limit recovery attempts. The RSI at 45 reflects neutral-to-bearish momentum, signaling that sellers remain in control, but the pair is not yet oversold.
The bearish trend appears intact, with traders eyeing a possible break below $0.65014. A sustained move below this level could open the door toward the next target of $0.64488, while the 50-day EMA continues to act as a dynamic resistance level.
Conversely, a recovery above the pivot at $0.65456 would be required to negate the bearish outlook and aim for the higher resistance at $0.65918.
Related News
- GOLD Price Analysis – Nov 26, 2024
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.