(MENAFN- Daily Forex)
The AUD/USD initiated an attempt to rally during Friday's trading session, yet it encountered signs of weakness once again. In this context, the 0.64 level retains its allure as a pivotal price magnet. The prevailing sentiment leans toward a bearish bias, particularly in a "risk -off environment." The Australian dollar's consolidation phase has not managed to shake off its overall negative outlook. A breach below the recent lows from the past few weeks could pave the way for a descent toward the 0.6250 level. Conversely, surpassing the 0.65 level may bring about renewed bearish sentiment in that vicinity. Forex Brokers We Recommend in Your Region 1 Read full review Get Started The market's gaze is likely to remain fixed on the double top formation around the 0.6520 level. If a breakout transpires beyond this point, the market could potentially surge toward the 0.66 level. However, the presence of the 50-Day Exponential Moving Average in proximity to the double top suggests that the market may encounter formidable resistance in that region. The market will continue to look at the overall growth and risk appetite for traders to fail the Aussie in its attempt to rally longer-term. The USD will continue to see inflows at the expense of the Australian dollar.Risk Appetite and the Performance of Asian Economies Shape the Pair's OutlookThe Australian dollar stands as a barometer of global risk appetite, with its fortunes intricately tied to commodity markets and global economic growth. Given the current economic landscape, with several major economies teetering toward recession, the Australian dollar appears set to grapple with ongoing challenges. While Chinese economic data has exhibited some signs of improvement recently, it often raises skepticism. It's important to bear in mind that the Australian dollar's performance is intrinsically linked not only to global growth but specifically to Asian growth, given Australia's role as a raw materials supplier to the region.In conclusion, the Australian dollar's attempt to rally encounters headwinds, with the 0.64 level exerting its magnetic pull-on prices. The prevailing negative sentiment persists, accentuated by the broader economic environment. A potential breakdown below recent lows may trigger further bearish momentum while surpassing the 0.65 level could rejuvenate bearish sentiment in that vicinity. The market remains cautious, with the double top and the 50-day EMA serving as prominent technical factors. The Australian dollar's path forward hinges on the global risk appetite and the performance of Asian economies, factors that continue to shape its outlook.Ready to trade our daily Forex analysis ? Here's a list of the
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