AUD/USD Video 28.04.21.
Australian Dollar Is Under Pressure Against U.S. Dollar
AUD/USD is currently trying to settle below the support at 0.7750 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get above the resistance at the 91 level and is trying to develop additional upside momentum. In case this attempt is successful, it will head towards the resistance at 91.30 which will be bearish for AUD/USD.
Today, Australia reported that Inflation Rate increased by 1.1% year-over-year in the first quarter compared to analyst consensus which called for growth of 1.4%. On a quarter-over-quarter basis, Inflation Rate increased by 0.6% compared to analyst consensus of 0.9%.
Later, traders will focus on the Fed Interest Rate Decision. While the rate is projected to stay unchanged, Fed’s commentary may have a material impact on currency dynamics on the foreign exchange market. At this point, Treasury yields are moving higher, providing support to the U.S. dollar, but the situation may change quickly if Fed manages to calm bond traders.
AUD/USD settled below the support at 0.7775 and is trying to settle below the next support level at 0.7750. In case this attempt is successful, AUD/USD will head towards the support which is located at the 20 EMA at 0.7720.
A move below the 20 EMA at 0.7720 will push AUD/USD towards the next support at the 50 EMA at 0.7705. If AUD/USD declines below the 50 EMA, it will likely gain additional downside momentum and head towards the next support level which is located at 0.7665. No important levels were formed between 0.7665 and the 50 EMA at 0.7705 so this move may be fast.
On the upside, AUD/USD needs to get back above 0.7750 to have a chance to develop upside momentum in the near term. The next resistance level is located at 0.7775. If AUD/USD gets above this level, it will move towards the resistance at 0.7800. A successful test of this level will push AUD/USD towards the resistance at 0.7820.
For a look at all of today’s economic events, check out our economic calendar.