8.19 FPG Australian Dollar Trend Analysis

The Chairman of the Federal Reserve Bank of Australia delivered a speech on Friday morning saying that some progress has been made in terms of inflation, but progress is very slow; it is too early to consider cutting interest rates, and there are no conditions for cutting interest rates in the near future. The economic outlook remains highly uncertain. Efforts are being made to restore the inflation rate to the target level within a reasonable time frame, while preserving as much as possible the gains made in the labour market over the past few years. Maintaining hawkish rhetoric has kept the market's expectations for the next session of the Australian Federal Reserve on hold. It's not like the Federal Reserve's September market had already given expectations of a 100% rate cut. Currently, there are only two major central banks left, the US and Australia, that have not adjusted interest rates this year, providing more support to the Australian dollar to a certain extent. Following the decline in the US dollar index on Friday evening, the Australian dollar also took the opportunity to rise.

On the technical side, the Australian dollar broke through the 0.664 mark on Friday and was slightly blocked around 0.668 this morning, in line with previous analysis. The biggest increase in the Australian dollar reached 1.9% last week, almost erasing all losses since Biden announced his withdrawal on July 22. It has now returned to the previous high level of the May-July shock range. The four-hour level is high in the upward channel and continues to fluctuate upward.

The upper line resistance is 0.668, the second line resistance is 0.670, and the third line resistance is 0.671.

The lower first line supports 0.666, the second line supports 0.664, and the third line supports 0.662.

This advice is general and does not take into account your specific financial situation and needs. Investments involve risk, so be sure to evaluate them carefully.