Aussie Dollar Rose Amid Hawkish RBA

Fundamental Analysis

* Yen Woes: The Japanese Yen continues to weaken against the dollar as the market processes dovish statements from the Bank of Japan (BoJ). According to Reuters, BoJ Deputy Governor Shinichi Uchida recently stated that the BoJ would not consider raising interest rates amidst market instability. He also mentioned that the BoJ’s interest rate strategy could adjust if changes in market volatility affect economic forecasts, risk assessments, or projections. Given recent market fluctuations, Uchida highlighted the importance of closely monitoring the economic and price effects of their policies, asserting, “We need to maintain our current level of monetary easing for now.”

Technical Analysis

* Technical Breakout: AUDUSD was traded higher following prior rebound from the support level 0.65700. MACD which illustrate diminishing bearish momentum suggest the pair to likely extend its gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 0.66400. Conversely, a potential reversal is also to be expected and the price could head back towards 0.65100 after it breaks back below the level 0.65700.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

* Looking forward, traders will closely watch upcoming data from Australia and China, including Australian employment figures, as well as Chinese Retail Sales and Industrial Production, which are set to be released later this week. Additionally, U.S. data will be closely scrutinized as it may also influence market momentum.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Australia data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.