AUD/USD picks up bids to refresh intraday high near 0.6330 during Tuesday’s Asian session. In doing so, the Aussie pair extends the previous day’s bounce off the 200-HMA while staying firmer inside a weekly bullish channel.

That said, the AUD/USD pair’s latest run-up aims for the 50% Fibonacci retracement level of October 04-13 downside, near 0.6360.

However, a convergence of the stated channel’s upper line and the 61.8% Fibonacci retracement, also known as the golden ratio, around 0.6410, appears a tough nut to crack for the pair buyers.

Should the quote rises past 0.6410, the 0.6500 round figure may act as a buffer during the anticipated run-up toward the monthly high of 0.6547.

Alternatively, pullback moves need to conquer the 200-HMA support of 0.6288 to convince intraday sellers of the AUD/USD.

Even so, the aforementioned bullish channel can challenge the bears unless the quote stays beyond 0.6250.

Following that, the yearly low of 0.6170 and the April 2020 bottom around 0.5980 will gain the market’s attention.

Overall, AUD/USD remains on the buyer’s radar unless breaking 0.6250. However, the upside room appears limited.

It should be noted that the sluggish US dollar and a lack of major data/events challenge bears. That said, the US Dollar Index (DXY) remains on the back foot around 111.85, taking rounds to intraday low while struggling to extend the week-start gains amid downbeat Treasury bond yields and cautious optimism in the markets.

Looking forward, the Aussie budget and Wednesday’s inflation data can entertain AUD/USD traders ahead of Thursday’s US Gross Domestic Product for the third quarter (Q3). While expectations of stimulus from Australia contrast with the recently softer tone from the Reserve Bank of Australia (RBA) to keep bears hopeful, US GDP should remain firmer to keep recall sellers.

Aussie almost close to providing an impulse

Oct 25 2022