**AUD/USD Declines Below 100-Hour Moving Average, Trades Near 0.6697**
*Based on an article by Kelvin Maina for FXDailyReport, with additional insights from industry sources such as Investing.com and DailyFX*
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## Overview of the Latest AUD/USD Movements
The Australian dollar (AUD), paired with the US dollar (USD), has showcased significant fluctuations in the forex market during recent trading sessions. The pair slipped below the 100-hour moving average, signaling a change in short-term sentiment and potentially hinting at further downside movements. As of the most recent analysis, the AUD/USD was trading at approximately 0.6697, reflecting both technical and fundamental influences at play.
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## Recent Price Action and Technical Levels
– The AUD/USD began the latest session with a slight uptick, trading above the key 100-hour moving average.
– Increased bearish momentum drove the pair lower, pushing it underneath this crucial technical indicator.
– By the end of the session, the AUD/USD hovered around the 0.6697 mark.
– This movement below the 100-hour MA is often regarded by traders as a bearish signal, suggesting more sellers are entering the market.
### Key Technical Observations
– The 100-hour moving average had been acting as a dynamic support for several sessions, absorbing downward pressure.
– Once breached, sentiment among market participants began to turn cautious, with many watching for confirmation of a continued downtrend.
– Support is now being eyed near the 0.6666 level, while immediate resistance lies at the previous 100-hour MA, which could now act as a ceiling for price recovery.
– The next significant support area appears near 0.6630, a level coinciding with previous price reactions and consolidative periods.
– On the upside, breaking back above the 100-hour MA could open the path toward 0.6730 and beyond.
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## Fundamental Drivers Impacting AUD/USD
Several macroeconomic factors have contributed to the AUD/USD’s current trajectory:
### US Dollar Strength and Economic Data
– Strong US economic data continues to underpin demand for the greenback.
– Latest jobless claims and retail sales data from the United States exceeded expectations, reinforcing the resilience of the American economy.
– The Federal Reserve’s relatively hawkish stance has also lent support to the USD, especially in the wake of persistent inflationary pressures.
– Markets now see a diminished probability of imminent rate cuts, which traditionally bolsters currency value.
– The US dollar index (DXY) saw modest gains, confirming broader dollar strength across the major pairs.
### Australian Economic Indicators
– The Reserve Bank of Australia (RBA) has maintained a cautious outlook regarding inflation and labor market dynamics.
– Recently released minutes from the RBA’s latest policy meeting indicated a wait-and-see approach, with policymakers unconvinced that inflation has been properly tamed.
– Weakness in Chinese economic data, particularly PMI figures and trade statistics, impact the Australian
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