AUDUSD Technical Analysis – Still trading in a range

<p>US:</p><ul><li>The Fed <a href="https://www.forexlive.com/centralbank/federal-reserve-interest-rate-decision-25-bps-rate-hike-to-525-550-20230726/">hiked by 25 bps</a> as
expected and kept everything unchanged at the last meeting.</li><li>Fed Chair Powell reaffirmed their data dependency
and kept all the options on the table.</li><li>The <a href="https://www.forexlive.com/news/us-august-cpi-06-mm-versus-06-mm-expected-20230913/">US CPI</a> last
week came in line with expectations, so the market’s pricing remained roughly
the same. </li><li>The <a href="https://www.forexlive.com/news/us-august-non-farm-payrolls-187k-vs-170k-expected-20230901/">labour market</a>
displayed signs of softening although it remains fairly solid.</li><li>The other important economic data like the ISM
Services PMI, Jobless Claims and Retail Sales all beat expectations recently. </li><li>The Fed members are leaning towards a pause in
September and the next decision will still be dictated by the economic data. </li><li>The market doesn’t expect the Fed to hike at the
September meeting, but there’s now basically a 50/50 chance of a hike in
November.</li></ul><p>Australia:</p><ul><li>The
RBA <a href="https://www.forexlive.com/centralbank/rba-leaves-the-cash-rate-unchanged-at-410-20230905/">kept its cash rate unchanged</a> as expected at the last meeting as
they are seeing signs that the economy is indeed slowing and that will help to
return inflation back to target. </li><li>The
data is supporting the RBA’s stance as the Australian <a href="https://www.forexlive.com/news/australia-july-jobs-649k-vs-25k-expected-jobless-rate-37-vs-37-exp-20230914/">jobs</a>, <a href="https://www.forexlive.com/news/australian-wages-data-for-q2-08-qq-expected-10-20230815/">wages</a> and <a href="https://www.forexlive.com/news/australian-q2-headline-cpi-08-qq-vs-10-expected-20230726/">inflation</a> data all remain lacklustre. </li><li>The
<a href="https://www.forexlive.com/news/manufacturing-services-australian-preliminary-pmis-for-august-remain-in-contraction-20230822/">Australian PMIs</a> last month missed expectations
remaining in contraction. </li><li>RBA
Governor Lowe in his speech reaffirmed that if inflation remains sticky, they
will have to tighten more.</li><li>The
market expects the RBA to hold rates steady at the next meeting as well.</li></ul><p>AUDUSD Technical Analysis –
Daily Timeframe</p><p>On the daily chart, we can see that the AUDUSD pair
remains stuck in a rangebound market as the uncertainty around the global
economy and the future rates path is high. The pair might also be consolidating
after such a big selloff from the 0.69 handle just to resume the downtrend at
some point. The sellers are eyeing the <a href="https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/">resistance</a> around
the 0.65 handle while the buyers will target a breakout to reach the 0.66
handle. </p><p>AUDUSD Technical Analysis –
4 hour Timeframe</p><p>On the 4 hour chart, we can see more closely the
range between the 0.6370 support and the 0.6500 resistance. The buyers continue
to have the upper hand as the price has been printing higher highs and higher
lows within the range. The target should be the 0.6500 resistance where we can
expect the sellers to pile in more aggressively with a defined risk above the
level and target the 0.6370 support, and eventually a break lower. </p><p>AUDUSD Technical Analysis –
1 hour Timeframe</p><p>On the 1 hour chart, we can see that the
price action has been very messy in the past few weeks with spikes all over the
chart. A break above the resistance zone around the 0.6445 level should lead to
a rally into the 0.6470 resistance. The sellers, on the other hand, might lean
on this 0.6445 resistance to target a fall into the 0.6405 support zone. </p><p>Upcoming Events</p><p><a href="https://www.forexlive.com/EconomicCalendar">This week</a> has just a couple of important economic
releases with the FOMC rate decision tomorrow being the highlight. The Fed is
expected to keep rates unchanged, and the market will focus more on the Dot
Plot and Fed Chair Powell’s press conference, although he’s likely to repeat
that they remain data dependent. Moving on to Thursday, we will see another US
Jobless Claims report, while on Friday we conclude the week with the Australian
and US PMIs data. </p>

This article was written by FL Contributors at www.forexlive.com.