Finds interim support near 0.6400 as US Dollar corrects

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<li><strong>AUD/USD rebounds from below 0.6400 as the USD Index fails to extend the rally.</strong></li>
<li><strong>Investors await the Australian inflation data, which is seen accelerating to 5.2% vs. July’s reading of 4.9%.</strong></li>
<li><strong>The Aussie asset is forming a Descending Triangle chart pattern, which demonstrates a volatility contraction.</strong></li>
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<p>The AUD/USD pair attempts recovery after discovering buying interest near the round-level support of 0.6400 in the European session. The <a href="https://www.fxstreet.com/currencies/audusd">Aussie</a> asset finds support as <a href="https://www.fxstreet.com/currencies/us-dollar-index">the US Dollar Index</a> (DXY) struggles to extend a rally above a fresh 10-month high near 106.20.</p>
<p>S&amp;P500 futures generated significant losses in the London session, portraying strength in the risk-aversion theme. The US Dollar is expected to remain on tenterhooks as investors await the <a href="https://www.fxstreet.com/economic-calendar/united-states">United States</a> Durable Goods Orders data for August, which will be released on Wednesday. The economic data is seen contracting at a slower pace of 0.4% vs. July’s contraction of 5.2%.</p>
<p>Meanwhile, the Australian Dollar is expected to remain on the tenterhooks ahead of the monthly Consumer Price Index (CPI) data for August. The Australian inflation is seen accelerating to 5.2% vs. July’s reading of 4.9%. A rebound in Australian inflation could be the outcome of the rising energy prices due to the global <a href="https://www.fxstreet.com/markets/commodities/energy/oil">oil</a> rally.</p>
<p>AUD/USD rebounds after testing September 21 low near 0.6385 on an hourly scale. The downward-sloping trendline from September 20 high at 0.6511 continues to act as a major barricade for the Australian Dollar bulls. The Aussie asset is forming a Descending Triangle <a href="https://www.fxstreet.com/rates-charts/chart">chart</a> pattern, which demonstrates a <a href="https://www.fxstreet.com/technical-analysis/volatility">volatility</a> contraction.</p>
<p>The 20-period Exponential Moving Average (EMA) at 0.6416 is acting as a major barricade for the Aussie bulls.</p>
<p>Meanwhile, the Relative Strength Index (RSI) (14) manages to defend slipping completely into the bearish range of 20.00-40.00.</p>
<p>A decisive break above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.</p>
<p>On the flip side, a fresh downside would appear if the Aussie asset drops below August 17 low around 0.6360. This would expose the asset to the round-level support of 0.6300 followed by 03 November 2022 low at 0.6272.</p>
<h2>AUD/USD two-hour chart </h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/AUD_USD%20(18)-638313171862873252.png" target="_blank" rel="noopener"><img decoding="async" src="https://editorial.fxstreet.com/miscelaneous/AUD_USD%20(18)-638313171862873252.png" style="width: 600px; height: 265px;" /></a></p>
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<br /><a href="https://www.fxstreet.com/news/aud-usd-price-analysis-finds-interim-support-near-06400-as-us-dollar-corrects-202309260927">Source link </a></p><p>The post <a href="https://forextraderhub.com/finds-interim-support-near-0-6400-as-us-dollar-corrects.html">Finds interim support near 0.6400 as US Dollar corrects</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>