Aussie Tests Key Support Ahead Of RBA

AUD/USD is Legal gold futures platformcoming down as risk-off moves take place and US yields and USD move higher across the board on hawkish FED expectations following nonfarm payrolls on Friday that rose by 315K in August vs. 300K expected.

One of the reasons for lower European shares today is also a suspension of Nord Stream 1 gas flows to Europe, as reported by Russia’s Gazprom. So, for now, the USD remains strong, but I am curious to see which currency can do better than the USD in the next few days.

I think Aussie can be on our watchlist as RBA is expected to be hawkish with a potential 50bp hike in their next meeting. This may help AUD/USD find some support at the 78.6% Fib level where subwave C equals wave A.

However, even if the price rallies, I do not expect any significant recovery since I think risk-off flows in stocks will remain in play for a few more weeks. So looking at the Aussie, I think there is a chance for a limited rally into wave E of a triangle, as shown on the chart below.

If RBA disappoints, then AUD will be very weak in this risk-off flow, especially if the price breaks the 2022 low. Then the triangle is already finished with the next projection near 0.65.AUD/USD daily chart.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!