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by The Australian dollar stayed below $0.675 on Wednesday, following a dip to a three-week low earlier. This decline came as traders processed the latest insights from the Reserve Bank of Australia’s (RBA) policy meeting minutes. The notes revealed that RBA officials had debated potential rate cuts and hikes in the future due to economic uncertainties.
However, they ultimately decided that keeping the current interest rate steady was the best way to balance the risks related to inflation and job growth.
The daily chart below shows the AUD/USD price, which is $0.673 as of this writing.
AUDUSD Fundamental Analysis – 9-October-2024
Consumer Confidence on the Rise
In other news, a private report showed that consumer confidence in Australia rose sharply in October. Many Australians felt optimistic, believing the RBA might hold off on further interest rate hikes.
Additionally, business sentiment in the country slightly improved in September, signaling a more positive outlook among companies.
External Pressures from a Stronger Dollar
Beyond domestic factors, the Australian dollar faced additional pressure from a stronger US dollar. Recent robust economic data from the United States has led investors to lower their expectations of interest rate cuts from the Federal Reserve, making the US dollar more attractive and weighing down the Aussie dollar.
AUD/USD Analysis – 9-October-2024
AUD/USD Analysis – 9-October-2024
FxNews—The currency pair trades bearish below the 50- and 100-period simple moving averages. Meanwhile, the Stochastic Oscillator and RSI 14 hover in oversold territory, signaling an oversold market. That said, the Awesome oscillator signals divergence, meaning the trend could reverse or consolidate near upper resistance levels.
From a technical standpoint, if the Australian dollar stabilizes above the $0.674 mark, it could rise toward the $0.678 resistance.
Please note that the market is saturated from buying pressure. Therefore, it is not advisable to join the bear market. Traders and investors should wait patiently for the AUD/USD price to consolidate near upper resistance areas.
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