AUD/USD Daily Forecast – U.S. Dollar Rebounds After Yesterday’s Sell-Off

AUD/USD Video 06.04.21.

Australian Dollar Declines Against U.S. Dollar

AUD/USD is currently trying to settle below the support at 0.7635 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the nearest resistance level at 92.70 but failed to develop sufficient upside momentum and pulled back. As a result, the U.S. Dollar Index remains in the range between the support at 92.50 and the resistance at 92.70. In case the U.S. Dollar Index manages to get above the resistance at 92.70, it will move towards the next resistance level at 93 which will be bearish for AUD/USD.

Today, the Reserve Bank of Australia left the interest rate unchanged at 0.1%, in line with the analyst consensus. RBA stated that wage and price pressures remained subdued and that it expected that inflation would remain below 2% over the next few years.

It also noted that it was prepared to purchase bonds in sufficient quantity to keep the yield of 3-year government bonds at 0.1%. In addition, RBA stated that its policy would remain highly supportive until 2024. This dovish stance put some pressure on the Australian dollar on the foreign exchange market.

Technical Analysis

aud usd april 6 2021

AUD/USD did not manage to settle above the 20 EMA at 0.7660 and is trying to settle below the nearest support level at 0.7635. If this attempt is successful, AUD/USD will head towards the support at 0.7600.

A successful test of this support level will open the way to the test of the next support at 0.7575. If AUD/USD declines below the support at 0.7575, it will move towards the next support at 0.7535.

On the upside, the nearest resistance level for AUD/USD is located at the 20 EMA at 0.7660. If AUD/USD manages to settle above this level, it will move towards the next resistance at the 50 EMA at 0.7685. A move above this level will push AUD/USD towards the resistance at 0.7700.

For a look at all of today’s economic events, check out our economic calendar.