FX.co ★ GokBoruHunter | AUD/USD

AUDUSD Daily Outlook Update On Thursday, the Australian Dollar rose against the US Dollar after Fed Governor Waller took a slightly more dovish stance ahead of the September meeting, even as oil prices climbed amid renewed violence in the Middle East. The AUD/USD pair is trading at 0.7213, up 0.44%. Market sentiment remains positive despite ongoing attacks in the Strait of Hormuz. The US Dollar continues to weaken after a rate check in Tokyo led to a sharp drop in USD/JPY and pushed down the US Dollar Index (DXY). US business activity, measured by ISM data, increased from 54.1 to 55.4 in August, beating expectations. The price paid component of the index also rose to 72.6 from 70.3, indicating that inflation pressures remain high. Initial Jobless Claims for the week ending August 29 rose from 204,000 to 206,000, slightly above the expected 205,000. Fed Governor Waller said the Fed will likely keep rates steady if the disinflation trend continues, but warned that a strong US CPI next week could lead to a rate hike. As a result, money markets adjusted their expectations for Fed rate hikes. In September, the chance of a 25 basis point hike dropped to 54% from 64%, while the chance of no hike rose to 46%, according to Prime Terminal. Traders are now waiting for the August Nonfarm Payrolls and Unemployment Rate data. In Australia, there are no major economic events, so market participants are focusing on sentiment and the US dollar. On the daily chart, AUD/USD is trading at 0.7200, showing a bullish outlook in the near term as the price stays above the closely grouped 50-, 100-, and 200-day SMAs at 0.7032. The pair also respects a series of upward trend lines from 0.6673 to 0.6897. The RSI(14) is at 66.14, which signals a positive bias but not yet overbought conditions. However, the pair is still limited by a longer-term descending resistance trend line from the 0.8015 area. On the downside, the first support is at 0.7198, now acting as a pivot below the current price, followed by the SMA cluster at 0.7032. Additional ascending trend-line supports are at 0.7005, 0.6898, 0.6897, and 0.6673. If the price breaks above the descending resistance at 0.8015, the recovery could gain more momentum.