**AUD/USD Rebounds from Session Lows, Trades Around 0.6542: In-Depth Analysis**
*Original Author: Layla Harding, FXDailyReport.com*
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**Overview of Recent AUD/USD Movements**
The Australian Dollar (AUD) witnessed a notable recovery against the US Dollar (USD) during the most recent trading sessions. After slipping to session lows, AUD/USD demonstrated resilience, climbing back to trade around the 0.6542 level. This rebound has drawn market attention due to underlying drivers including economic data from Australia and the United States, shifting risk sentiment, and adjustments in investor positioning.
**Key Factors Influencing the AUD/USD Pair**
Several internal and external factors have contributed to AUD/USD’s latest movements. Below is a detailed breakdown of these influences:
– **Australia’s Economic Data Releases**
– Reports from Australia, including GDP growth figures, employment statistics, and trade balances, have direct implications on the currency’s strength.
– Recently released economic indicators showed mixed outcomes, affecting initial market sentiment.
– Although there were concerns following the data, other factors helped stabilize AUD/USD after the drop.
– **US Economic Performance and Dollar Strength**
– The US Dollar remains one of the most critical benchmarks for global currencies. Its recent strength has weighed on AUD/USD, especially after hawkish remarks from Federal Reserve officials.
– US inflation data, alongside employment and consumer spending reports, played a significant role in boosting the greenback.
– Market speculation over the Federal Reserve’s future monetary policy moves has led traders to favor the US Dollar in the near term, contributing to pressure on AUD/USD.
– **Risk Sentiment in Global Markets**
– Risk sentiment continues to be a critical driver in Forex markets. Shifts between risk-on and risk-off behaviors rapidly influence commodity-linked currencies like the Australian Dollar.
– A stabilization in global equities and commodity markets has provided a degree of support for AUD/USD.
– **Interest Rate Differentials**
– Differences in interest rates between the US Federal Reserve and the Reserve Bank of Australia (RBA) have created a dynamic landscape for the AUD/USD.
– The RBA has kept rates steady, while markets speculate on the next moves from both central banks.
**Technical Analysis: Support and Resistance Levels**
A detailed technical perspective provides traders with key reference points for potential trading decisions:
– **Current Levels**
– The AUD/USD drifted as low as 0.6500 during the session but rebounded to 0.6542.
– This level has functioned as a near-term resistance, as evident from multiple tests in the past week.
– **Immediate Support**
– 0.6500 has acted as a psychological and technical support.
– Below this, 0.6460 stands as the next significant support level based on historical price action.
– **Resistance Barriers**
– Immediate upside resistance lies at 0.6560–0.6570, followed by
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