AUD/USD Rebounds Above 0.6600 as US Dollar Weakens.
AUD/USD rebounds, climbing back above 0.6600 as the US Dollar weakens.
FUNDAMENTAL OVERVIEW:
The Australian Dollar edged back above 0.6600 against the US Dollar in a volatile Tuesday session, supported by a weaker greenback and improving risk sentiment ahead of US flash PMI data and Fed Chair Jerome Powell’s upcoming address.
Business activity in the US is projected to show a slowdown across both manufacturing and services, though still at levels consistent with moderate growth. The key risk lies in a sharper-than-expected decline, which could reignite worries about tariff-related headwinds and intensify pressure on the Fed to deliver deeper rate cuts. The PMI results will likely set the tone for Powell’s speech on the economic outlook at the Providence Chamber of Commerce.
Following the latest policy meeting, Powell tempered expectations for aggressive monetary easing, warning of persistent inflationary pressures—a stance that briefly lifted the US Dollar against its major counterparts. However, the currency’s rebound appears to have stalled this week. On Monday, several Fed officials offered divergent views on monetary policy, but their comments left market expectations unchanged: a 90% probability of a quarter-point rate cut in November and roughly a 70% chance of another in December, based on the CME FedWatch Tool.
AUD/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
AUD/USD is trading within an up channel.
AUD/USD is moving above 20&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 0.6638
Immediate support level: 0.6559
HOW TO TRADE AUD/USD
After a dip on the higher time frame, AUD/USD found solid support and has since been rallying sharply to the upside. Currently, the pair is undergoing a pullback, retracing into the Fibonacci zone and key support area, where it is once again showing signs of strength and rebounding. If AUD/USD holds above this zone, the bullish momentum could resume, paving the way for further upside gains.
