August 07, 2024 at 09:07AM
And despite all the volatility, AUD/USD is now roughly flat in August trading when accounting for the slight rise today. The pair was in a rough spot earlier on Monday as it briefly fell to its lowest since November last year. But from the daily chart, the April low held and we’re seeing a double-bottom pattern set up right now.
The rebound also sees buyers looking for a push towards the 50.0 Fib retracement level of the swing lower since July, seen at 0.6573. That will be a modest resistance point before the key daily moving averages come into play. The confluence of the latter is seen at 0.6593-00 currently.
Those will pose some challenges to the upside bounce in the near-term for now.
The RBA did also provide some relief for the aussie after having ruled out rate cuts for the remainder of the year. That saw a November rate cut priced out but there is still ~20 bps of rate cuts priced in by December currently.
All that being said, the key factor driving the mood in AUD/USD is broader market sentiment. The breather in the last few sessions is helping with the rebound but sentiment remains fragile. Buyers will be hoping for a continuation in the recent optimism but there will be the next hurdle from the US weekly jobless claims tomorrow. So, do be mindful of that as another potential trigger for traders to react this week.
This article was written by Justin Low at www.forexlive.com.
