AUDUSD Technical Analysis – Watch this key support

<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><a href="https://www.forexlive.com/news/us-june-cpi-02-mm-versus-02-mm-expected-20230810/">Inflation</a> measures
since then showed further disinflation. </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 tight.</li><li>Overall, the economic data started to surprise to
the downside lately.</li><li>The Fed members are leaning more towards a pause
rather than another rate hike.</li><li>The market doesn’t expect the Fed to hike anymore.</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 widely expected 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-146k-vs-15k-expected-jobless-rate-37-vs-35-exp-20230817/">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 missed expectations
lately. </li><li>The
<a href="https://www.forexlive.com/news/manufacturing-services-australian-preliminary-pmis-for-august-remain-in-contraction-20230822/">Australian PMIs</a> also missed expectations remaining
in contraction. </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 today the
AUDUSD pair sold off as the Chinese Services PMI missed expectations by a big
margin. The RBA also seems to be done with their tightening cycle, so there’s
not much support for the AUD on the fundamentals side, while there’s support
for the USD as a safe haven currency. The pair is now at the previous lows, and
we might see a bounce as we await the US data next. The bearish trend
nonetheless remains intact and the target for the sellers is the 0.6168 level. </p><p>AUDUSD Technical Analysis –
4 hour Timeframe</p><p>On the 4 hour chart, we can see that we’ve been
ranging between the 0.6370 <a href="https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/">support</a> and the
0.6500 resistance. The last week it seemed like the pair could at least correct
into the 0.6616 level as China stepped up support for the economy and the US
data missed expectations, but fears of a bigger global slowdown are likely
prevailing. A break below the support should see more sellers piling in and
extend the drop into the 0.6168 level. </p><p>AUDUSD Technical Analysis –
1 hour Timeframe</p><p>On the 1 hour chart, we can see that the
price is now overextended as depicted by the distance from the blue 8 <a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving average</a>. In
such instances, we can see the price pulling back into the moving average or
consolidate before the next move. The buyers are likely to step in here with a
defined risk below the support to target the 0.66 handle. The sellers, on the
other hand, will want to see the price breaking lower to pile in even more and
target new lows. </p><p>Upcoming Events</p><p><a href="https://www.forexlive.com/EconomicCalendar">This week</a> is a bit empty on the data front with just the
US ISM Services PMI tomorrow and the US Jobless Claims on Thursday being the
main highlights. The market pricing is unlikely to change unless the data comes
in really hot in which case, we should see the US Dollar strengthening. On the
other hand, weaker readings might just bring forward rate cuts expectations and
weigh on the greenback in the short term. </p>

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