8.20 FPG Australian Dollar Trend Analysis

AUDUSD H4

The Australian dollar has maintained a strong rise. The Australian Federal Reserve Chairman's many statements have revealed that the Australian Federal Reserve did not cut interest rates this year. Australia and the US are currently the only major central banks in the world that have not adjusted their interest rate policy this year. As the Federal Reserve's interest rate decision next month approaches, the market expects the Fed to cut interest rates by 25 basis points in September, and there is still a 25% chance that it will cut interest rates by 50 basis points. As a result, the US dollar index fell back to the low level of January 2 this year last night. Interest rate differences between the central banks of the two sides have led to more spread trading, and the weakening of the US dollar has led to the strengthening of the Australian dollar. Currently, the focus of the market is returning to Powell's public statement this week, and we will look for more clues about the Fed's interest rate cut in his speech.

On the technical side, the Australian dollar rose strongly, and yesterday's fall in the US dollar led the Australian dollar to break the upward channel. The originally smooth upward slope suddenly became steeper. Currently, the Australian dollar has repaired all of its declines since mid-July in just 11 trading days, and has risen strongly by 6% from a low level. Currently, the price has returned above 0.671. Early trading was slightly blocked around 0.673. It is possible that in the short term, the price will readjust the upward slope of the fluctuation, and the direction of thought will not change.

Upper line resistance 0.673, second line resistance 0.675, third line resistance 0.676.

The lower first line supports 0.671, the second line supports 0.670, and the third line supports 0.668.

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.