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The AUDUSD Retreats from Record Lows

10/18/2022 11:22 AM

The AUD/USD pair shows moderate growth, developing the upward momentum formed the day before and testing the level of 0.6310 for a breakout.

The focus of investors today are the minutes of the Reserve Bank of Australia (RBA) meeting as of October 5, at which it was decided to raise the interest rate by 50 basis points to 2.60%. In addition, the regulator signaled in favor of further moderate tightening of monetary policy. Board members continue to expect inflation to be around 7.5% by the end of 2022, by 2023 price pressure is expected to decrease to 4.0%, and in 2024 it is projected to fall to 3.0%. The RBA also noted the tense situation in the labor market, as many companies experienced noticeable difficulties in hiring employees during the first half of 2022, while the Unemployment Rate in the country in August was 3.5%, which is the lowest level in the last 50 years. In the near future, the regulator expects a slight increase in unemployment against the backdrop of a slowdown in economic growth.

This week Australia will publish a report on the labor market for September, which will complement the statistics of the released minutes. Current forecasts suggest an increase in Employment Change by 25.0 thousand, while maintaining the Unemployment Rate at around 3.5%.

Bollinger Bands in D1 chart demonstrate quite active decrease. The price range is narrowing, reflecting the emergence of corrective growth in the ultra-short term. MACD has reversed to growth having formed a new buy signal (located above the signal line). Stochastic is showing similar dynamics being located in the middle of its area.

Resistance levels: 0.6362, 0.6450, 0.6522, 0.6572. | Support levels: 0.6250, 0.6200, 0.6140, 0.6100.

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