Aussie Price Setups (AUD/USD, AUD/NZD, AUD/JPY)
- AUD/USD strengthens, building on prior gains
- AUD/NZD bull flag propels upside continuation
- AUD/JPY pulls back massively after suspected FX intervention
- Get your hands on the Aussie dollar Q2 outlook today for exclusive insights into key market catalysts that should be on every trader's radar:
Markets Erase RBA Cuts, Pricing in Rate Hike Odds Instead
In the aftermath of the hotter-than-expected Australian inflation in Q1, markets have removed prior bets in favour of rate cuts and now price in the potential for another rate hike later this year.
In addition, global risk sentiment has improved after the risk of a broader Israel-Iran conflict has now subsided. AUD is therefore, well placed to take advantage of improving conditions.
Implied Basis Point Hikes now Expected by the Market (Official Cash Rate)
Source: Refinitiv, prepared by Richard Snow
AUD/USD Strengthens, Building on Prior Gains
AUD/ USD made a sharp pivot at the 0.6365 level, advancing through 0.6460 in the process. At the end of last week, the 200-day simple moving average (SMA) appears as an immediate level of resistance at the start of this week. AUD/USD bulls pushed through the barrier on Monday, tagging 0.6580 before pulling back intra-day. The RSI is still some distance from overbought territory, suggesting the market may still have more upside left before a correction is due. The 200 SMA re-emerges as the nearest level of support, where a hold above it, extends the bullish continuation bias. FOMC is due on Wednesday along with ISM manufacturing PMI figures and NFP rounds up the week. Therefore, there is plenty of dollar-centered data to sway the pair. A bullish continuation brings the 0.6580 level and 0.6680 market into focus.
AUD/USD Daily Chart