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MENAFN- Daily Forex) Bullish view
Buy the AUD/USD pair and set a take-profit at 0.6705. Add a stop-loss at 0.6530 Timeline: 1-2 days.
Bearish view
Sell the AUD/USD pair and set a take-profit at 0.6530. Add a stop-loss at 0.6705.
The AUD/USD exchange rate was little changed on Wednesday as traders focused on next week's Reserve Bank of Australia (RBA) interest rate decision and key statements from the Federal Reserve. It was trading at 0.6600, down from last week's high of 6706 Interest Rate Decision Ahead
The AUD/USD exchange rate wavered as market participants focused on some key economic numbers, which will have an impact on the next Reserve Bank of Australia (RBA) interest rate decision.
A report released by S&P Global showed that the manufacturing and services sectors maintained their resilience in August. The manufacturing PMI slowed to 51.6, while the services one eased from 55.5 in August to 52.1 in September.
Consequently, the composite PMI slowed to 52.1 during the month. Still, the numbers mean that the sectors are expanding because they are above the expansion zone of 50.
Another report released on Wednesday showed that the monthly inflation rose slightly in August to 2.9% from the previous 2.8%.
The RBA will consider these numbers and the weak jobs data released last week when considering whether to cut interest rates next week. Analysts expect the bank to leave interest rates unchanged at 3.6% in this meeting.
There will be no major macro data from the United States on Wednesday. The next important catalyst for the pair will be Thursday's GDP data and Friday's Personal Consumption Expenditure (PCE) report.
While these numbers are important, their impact on the AUD/USD pair will be limited as the Fed is now focusing on the labor market. Traders will instead focus on next week's non-farm payrolls data, which will provide more information about what to expect in the last two meetings of the year.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money AUD/USD Technical Analysis
The daily timeframe chart shows that the AUD/USD exchange rate has pulled back in the past few days, moving from a high of 0.6706 on September 17 to 0.6600 today.
EURUSD Chart by TradingView
It has dropped below the important support level at 0.6620, its highest point on July 24, confirming the bearish outlook.
On the positive side, the pair has remained above the 50-day Exponential Moving Average (EMA)and the Ichimoku cloud.
The pair has also settled at the major S/R pivot point of the Murrey Math Lines. Therefore, the AUD/USD exchange rate will likely have a bullish breakout, potentially to the year-to-date high of 0.6706.
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