The Australian Dollar (AUD) halted its recent three-day decline on Thursday, possibly buoyed by improved risk appetite. However, it faced pressure following the release of the Consumer Inflation Expectation by the Melbourne Institute, which dropped to 4.1% in May from 4.6% in April, marking its lowest level since October 2021.
Private sector activity in Australia remained in expansionary territory for the fourth consecutive month in May. The preliminary Judo Bank Composite Purchasing Managers Index (PMI) slipped to 52.6 from April’s 53.0, indicating a slight moderation in growth. This growth was driven primarily by the services sector, while the decline in manufacturing output decelerated.
Meanwhile, the US Dollar (USD) continued its strength after recent gains, fueled by the minutes from the latest Federal Open Market Committee (FOMC) meeting. Federal Reserve (Fed) policymakers voiced concerns about ongoing inflationary pressures, which have proven more persistent than initially anticipated in 2024. Consequently, the Fed remains cautious about potential interest rate adjustments.
AUD/USD: Daily Chart
In technical analysis, the Australian Dollar is trading near 0.6620 on Thursday. Analysis of the daily chart suggests a weakening bullish bias as the AUD/USD pair breached the lower boundary of an ascending triangle. Despite this, the 14-day Relative Strength Index (RSI) remains slightly above 50; a further decline in RSI could confirm a bearish trend.
The key psychological support level stands at 0.6600. Continued downward movement may intensify selling pressure on the AUD/USD pair, potentially testing support near 0.6470.
On the upside, the nine-day Exponential Moving Average (EMA) at 0.6639 represents immediate resistance, followed by a major level at 0.6650. A breakout above the lower boundary of the ascending triangle could reinforce a bullish outlook for the AUD/USD pair.
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 Japanese Yen, the Australian dollar was the strongest.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.05% | -0.08% | -0.09% | -0.19% | 0.03% | -0.37% | -0.09% | |
| EUR | 0.05% | -0.04% | -0.02% | -0.13% | 0.09% | -0.31% | -0.05% | |
| GBP | 0.08% | 0.04% | 0.01% | -0.10% | 0.13% | -0.28% | -0.01% | |
| CAD | 0.08% | 0.02% | 0.00% | -0.09% | 0.12% | -0.29% | -0.03% | |
| AUD | 0.19% | 0.14% | 0.10% | 0.10% | 0.22% | -0.18% | 0.09% | |
| JPY | -0.03% | -0.08% | -0.14% | -0.11% | -0.24% | -0.39% | -0.14% | |
| NZD | 0.39% | 0.31% | 0.27% | 0.29% | 0.17% | 0.39% | 0.28% | |
| CHF | 0.10% | 0.05% | 0.01% | 0.02% | -0.09% | 0.14% | -0.27% |
Paraphrasing text from "FX Street" all rights reserved by the original author.
