USD/AUD Forecast, Prediction and Analysis Today

This pair saw increased selling pressure following today’s Reserve Bank of Australia (RBA) widely expected rate hike, suggesting market participants had already factored in the 25-basis point (BPS) hike.

This pair remained in consolidation mode in early trade on Tuesday as market participants brace for key domestic inflation data and the Federal Reserve’s October interest rate decision later this week, two key catalysts that could drive the Aussie dollar’s next move.

This pair continued to consolidate within a longer-term trading range in early trade on Tuesday as market participants shrugged off last week’s soft domestic employment data and focused on scaled back bets of a Federal Reserve interest rate hike this month.

Amid a backdrop of geopolitical uncertainty, key Australian and U.S. economic data this week could drive the AUD/USD’s next move.

The AUD/USD has continued its cautious climb higher this week after in-line services PMI data released on Monday increased expectations that U.S. interest rates will remain on hold this month.

Given today’s RBA rate rise has already been factored in and the central bank’s accompanying statement provided little in the way of forward guidance, the pair may see a more meaningful move later this week following a slew of key domestic and U.S. economic data.

This currency pair continued its recent side in early trade on Friday, pressured by dollar strength driven by soaring Treasury yields and increasing bets of further interest rate hikes.

Given the RBA’s hawkish outlook and expected rate hike next week, market participants will closely eye upcoming local PMI and employments data.

The pair’s latest move lower came on Wednesday after the Fed increased its benchmark interest rate to the 3.75% to 4.00% range and flagged increasing borrowing costs in the months ahead as the central bank attempts to combat persistent inflationary pressures...

The pair entered this week under pressure as market participants have now priced in a near certain U.S. interest rate hike this week and flocked to the safe-haven dollar following escalating tension in the Middle East that has pushed West Texas Intermediate back over $100.

The Australian dollar could come under further pressure later today when market participants get a read on consumer inflation, which is expected to show core inflation climbing 0.2% last month, taking the annual rate to 3.4%.

Despite the pair initially selling off following U.S. nonfarm payrolls and unemployment data exceeding economists’ expectations, buyers quickly re-emerged, suggesting underlying bullish sentiment and a focus on growing expectations that the Reserve Bank of Australia (RBA) will...

This latest data combined with sticky domestic inflation continues to support the AUD/USD as expectations of a September rate hike grow.

The question remains whether Friday’s sell-off represents a pause in the pair’s recent bullish momentum or the start of a broader reversal.

H1: Warsh's Jackson Hole Speech Exposes Dangerous AUD/USD Bullish Trap