Australian dollar stable as hawkish RBA fuels interest in Australian dollar

The AUD/USD pair is rising, reaching the level of 0.6950.
The RBA’s Bullock stayed in the loop and maintained his hawkish stance.
A weaker US dollar also supported the Australian dollar.

The AUD/USD pair rose by 0.40% during Friday’s session, settling around 0.6950. The mixed sentiment prevailing in the United States, combined with the words of the Reserve Bank of Australia (RBA) Governor Michele Bullock, influenced the Australian dollar.

The RBA’s continued aggressive stance, despite a mixed economic outlook for Australia and rising inflation, has led to markets predicting only 25 basis points of monetary policy easing in 2024, which appears to be contributing to increased interest in the Australian dollar.

Daily Market Factors Review: Australian dollar gains on Governor Bullock’s remarks

Friday brought some corrections in the AUD/USD pair, reflecting comments from RBA Governor Bullock.
It expressed vigilance over potential inflation risks, saying it was premature to consider cutting interest rates.
At the same time, Bullock acknowledged the uncertain outlook, explaining that the bank does not anticipate being able to cut interest rates in the near future. She noted that Australia’s interest rate has peaked at 4.35% compared with other countries.
The weakening of the US currency is due to mixed sentiment and delicate data from the US housing market.
As monetary policy diverges, the currency pair could see further gains.

AUD/USD Technical Outlook: AUD/USD Buyers Remain Strong, Outlook Upbeat

On the technical side, the AUD/USD pair has shown significant volatility, with the swings favoring a slight bullish bias. The Moving Average Convergence Divergence (MACD) confirms this bias, showing rising green bars.

The Relative Strength Index (RSI), an oscillator that shows market momentum, is holding around 50, which points north and offers a bullish signal. Key support levels are found at 0.6600-0.6630, while resistance is emerging near the 0.6650 region. A breakout in either direction could potentially suggest further directional intent.