AUD/USD extends draw back run, eyes on the October 2023 lows subsequent

The drop this week is constant after the break underneath the August low of zero.6347. That’s main the pair to fall to its lowest ranges this yr with the low right now touching zero.6305. We’re seeing worth motion protecting thereabouts now, with eyes on the October 2023 lows of zero.6270-01 subsequent.

For right now, the technical promoting is persisting however we’re but to get to the principle occasion later within the day. The FOMC assembly signifies that the greenback aspect of the equation would be the key issue influencing proceedings within the periods forward. That will even be a key driver in vindicating the draw back break of the August low from yesterday.

If we do get a extra dollar-positive response to the Fed, the massive focus for AUD/USD is the October 2023 lows as highlighted above. If that provides means, then that may draw within the October 2022 lows close to zero.6200 subsequent.

In addition to that, do remember that the PBOC might be making their subsequent determination on the LPRs on Friday. Market gamers usually are not anticipating any modifications however it’s price noting in case for any surprises after having adjusted their coverage stance to being “reasonably unfastened” now.

That may additionally impression the aussie aspect of the equation with the yuan in fact having a key affect over the previous two months.

This text was written by Justin Low at www.ubaidahsan.com.



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