9.9 FPG analysis of the Australian dollar trend

AUDUSD H4

The Governor of the Reserve Bank of Australia remained hawkish in his speech last week, stating that due to high inflation, it is unlikely to cut interest rates in the short term. The Australian dollar has been oscillating higher before the release of US employment data on Friday. However, on Friday evening, the US released mixed nonfarm payroll and unemployment rate data. Nonfarm payroll was lower than expected but increased compared to the previous value, while the unemployment rate met expectations and decreased for the first time in the past five months. The market reduced its expectations of a US economic recession, and the USD rebounded after falling. The Australian dollar, despite its strength, cannot match the strength of the USD. The US dollar hit a new low for the year, while the Australian dollar rose to around 0.676. However, with the USD bouncing back, the Australian dollar was suppressed by its strength, with a daily decline of nearly 1.6%. There are not many Australian data this week, but the market is focusing on the Consumer Price Index (CPI) and the Producer Price Index (PPI) on Wednesday and Thursday evening at 22:30, which are the last reports before the Federal Reserve's interest rate decision in September. These two data points will have a significant impact on the Australian dollar in the short term.

Technically, the Australian dollar rallied and then fell on the previous trading day, directly breaking through the previous short-term upward trendline and being suppressed back into the fluctuation range of May, below 0.668. Pay attention to the possibility of a short-term reversal at the 0.668 level.

There is a resistance at 0.668, a second resistance at 0.670, and a third resistance at 0.671.

The first support line below is at 0.666, the second support line is at 0.664, and the third support line is at 0.662.

# This advice is only general advice and does not take into account your specific financial situation and needs. Investment involves risk, so please evaluate it carefully. #