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The Australian Currency Takes the Initiative in the Pair

9/9/2022 2:26 PM

The AUD/USD pair is correcting against the background of the downward dynamics of the USD and the rhetoric of the head of the Reserve Bank of Australia (RBA) Philip Lowe, currently trading at 0.6832.

In particular, he said on the eve that officials are closely monitoring the market reaction to the "hawkish" course of the department in the field of interest rates, and further decisions on monetary policy will be based on inflation data and employment indicators. If the growth rate of consumer prices decreases, and there is a positive trend in the labor market, the RBA will be ready to consider stabilizing the indicator. In addition, the official admitted that the regulator made a mistake based on its previous forecast, which assumed a slowdown in inflation in early summer. Now the estimates have been revised, and officials hope that the value will be fixed at 7.25% in the coming months. Such flexibility was positively perceived by investors. Next week, their attention will be drawn to statistics from the labor market: employment in the country may grow by 50.0K after a long period of negative dynamics.

In turn, the USD temporarily slowed down its active growth and for the third session in a row shows a decline, holding around 108.700 in the USD Index. The macroeconomic statistics published yesterday were perceived negatively, as, despite the decrease in the number of initial applications for unemployment benefits to 222.0K from 228.0K, the total number of Americans receiving assistance from the state increased to 1.473M people from 1.437M a week earlier. On the eve of the US Fed meeting, weak labor market data are a negative signal.

On the daily chart of the asset, the price is correcting, having completed the development of the Head and Shoulders reversal pattern. Technical indicators are starting to reverse towards growth again: fast EMAs on the alligator indicator are actively approaching the signal line, and the histogram of the AO oscillator has begun to change direction towards the transition level, stopping the decline.

Support levels: 0.6742, 0.6600. | Resistance levels: 0.6871, 0.7050.

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