AUD – The Australian Dollar Consolidates Around the 0.70 Level

The Federal Open Market Committee (FOMC) unanimously decided to maintain the federal funds rate at 3.50%-3.75%. New Fed Chairman Warsh, in his first meeting since taking office, emphasized the continued commitment to pushing inflation back to the target level. While maintaining the rate was in line with market expectations, the policy signals from policymakers leaned towards a hawkish stance. Several officials hinted that the possibility of further monetary tightening this year is increasing, given the continued volatility in energy prices and inflation risks.

The Australian dollar has consolidated around the 0.70 level against the U.S. dollar over the past week. On the upside, the 0.72 level will be the first reference point, and the 50-day moving average should also be noted. Since mid-May, the exchange rate has tested this level several times before rebounding, so the 50-day moving average at 0.7140 still holds some technical significance. Support levels are seen at 0.70 and 0.6970, with further targets at 0.69 and 0.68. The nearest resistance level is at 0.7120, with the next level expected at 0.7280, followed by a move towards 0.7380.

Forecast range:
Resistance 0.7140 - 0.7200* - 0.7280 - 0.7380
Support 0.7000* - 0.6970 - 0.6900 – 0.6800

This Week's News Highlights:

16/6 Australia keeps interest rates unchanged, emphasizing high inflation and uncertain outlook

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