The Australian Dollar (AUD) has continued to strengthen against the US Dollar (USD) for the third consecutive session on Tuesday. This is despite Australia's Retail Sales (MoM) rising by just 0.1% in April, which, although a reversal from the previous month's 0.4% decline, still fell short of market expectations of 0.2%.
The AUD's strength is further supported by an improved risk appetite and insights from the latest Reserve Bank of Australia (RBA) meeting minutes. The RBA board acknowledged the difficulty in predicting future changes in the cash rate, noting that recent data suggest a higher likelihood of inflation remaining above the 2-3% target for an extended period.
Conversely, the US Dollar (USD) has been losing ground, partly due to a decline in US Treasury yields. The US Dollar Index (DXY), which measures the USD against six major currencies, is trading around 104.50. At the same time, yields on 2-year and 10-year US Treasury bonds are at 4.94% and 4.46%, respectively.
The CME FedWatch Tool indicates that the probability of the Federal Reserve implementing a 25 basis-point rate cut in September has decreased to 44.9%, down from 49.6% a week earlier. On Tuesday, several Federal Reserve officials, including Fed Governor Michelle Bowman, Cleveland Fed President Loretta Mester, and Minneapolis Fed President Neel Kashkari, are scheduled to speak.
Technical Analysis: Australian Dollar Moves Above Key Level of 0.6650
The Australian Dollar is trading around 0.6660 on Tuesday. Analysis of the daily chart indicates a bullish trend for the AUD/USD pair, which is positioned within a rising wedge. The 14-day Relative Strength Index (RSI) is slightly above 50, supporting this bullish outlook.
The AUD/USD pair could potentially reach a four-month high of 0.6714, followed by the upper limit of the ascending triangle at around 0.6730.
On the downside, the 21-day Exponential Moving Average (EMA) at 0.6618 serves as key support, followed by the psychological level of 0.6600. A further decline could put additional downward pressure on the AUD/USD pair, potentially driving it towards the throwback support region at 0.6470.
AUD/USD: Daily Chart
Australian Dollar price today
The Australian Dollar's (AUD) percentage move against the main currencies listed today is displayed in the table below. When compared to the US dollar, the Australian dollar was the strongest.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.13% | -0.07% | -0.07% | -0.18% | -0.07% | -0.16% | -0.16% | |
| EUR | 0.13% | 0.05% | 0.05% | -0.06% | 0.08% | -0.03% | -0.01% | |
| GBP | 0.08% | -0.06% | -0.01% | -0.11% | 0.02% | -0.09% | -0.08% | |
| CAD | 0.07% | -0.05% | -0.01% | -0.11% | 0.03% | -0.09% | -0.07% | |
| AUD | 0.18% | 0.06% | 0.12% | 0.11% | 0.13% | 0.02% | 0.03% | |
| JPY | 0.05% | -0.07% | -0.02% | -0.05% | -0.15% | -0.10% | -0.09% | |
| NZD | 0.16% | 0.04% | 0.09% | 0.08% | -0.02% | 0.11% | 0.02% | |
| CHF | 0.14% | 0.02% | 0.08% | 0.08% | 0.00% | 0.09% | -0.01% |
Paraphrasing text from "FX Street" all rights reserved by the original author.
