AUDUSD rises 0.95% as U.S. house prices stabilize and RBA maintains rates

AUDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.95%	65.2 Pips
Week to-date	1.32%	89.9 Pips
September	1.53%	104.1 Pips

Upcoming key events (London Time)

Wed 02:30 AM AUD Monthly CPI Indicator (12-mth)
Thu 01:30 PM USD GDP annual rate
Thu 02:20 PM USD Federal Reserve Chair Jerome Powell speech

What happened lately

The U.S. Federal Housing Finance Agency (FHFA) reported a slight improvement in the U.S. House Price Index for July, which rose to 0.1% from -0.1% in June. This minor increase signifies a halting of the earlier decline in house prices, potentially indicating some stabilization in the housing market. Such data can positively reflect on consumer sentiment and possibly hint at underlying resilience in the housing sector, which is a critical part of the overall U.S. economy.

In Australia, the Reserve Bank of Australia’s (RBA) recent monetary policy decision saw the cash rate target remain unchanged at 4.35%. This decision aligns with the bank’s wait-and-see approach, as policymakers likely assess the impact of previous rate hikes on the domestic economy. Keeping the rate steady allows them to balance between supporting economic growth and addressing inflationary pressures.

The 0.95% rise in AUDUSD to 0.68999 on Tuesday can be attributed to the combination of the stabilizing U.S. housing market and the RBA’s steady hand on interest rates. A relatively stable economic indicator from the U.S. with no new rate hikes from Australia might create a favorable environment for the Australian dollar.

Looking ahead, key upcoming events such as the Australian Monthly CPI Indicator and the U.S. GDP annual rate, along with a speech by Federal Reserve Chair Jerome Powell, are likely to drive further movements in the AUDUSD pair. High-impact data releases and statements often result in increased volatility as market participants adjust their positions based on new information. Should Australian inflation data suggest rising price pressures, the AUD could strengthen further. Conversely, strong U.S. GDP figures or a hawkish tone from Powell could bolster the USD, potentially reversing some of the recent gains in AUDUSD.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Tuesday rose 0.95% to 0.68999. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks bullish as the pair ended higher after Tuesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.69321 with break above could target R2 at 0.69643 or figure level area. While towards the downside, we are looking at daily low of 0.68135 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.69050 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is bullish as the pair continued to trade higher and is up by 1.32% over the past few days.

Key levels to watch out:

#AUDUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#AUDUSD” num=3 showheader=false]