AUD/USD reverses its course after failing to break the 200-day Exponential Moving Average (EMA) at 0.68099m re-treating beneath 0.6700. economic news from the United States (US), alongside a hawkish tone of US Federal Reserve (Fed) officials, were the driving factors of AUD/USD’s price action. The AUD/USD is trading at 0.6698, down 1.26%.

On the Australian front, a solid employment report crushing estimates of 20K, at 53K in March, suggests that although the Reserve Bank of Australia (RBA) paused hiking rates, the RBA might resume its campaign as the Unemployment Rate dipped to 3.5% from 3.6%. In the latest meeting, the RBA’s Governor Philipe Lowe said that the pause did not imply that further increases were off the table and commented that the central bank would be data dependent.

Given the backdrop, the AUD/USD plummeted sharply after testing the 200-day EMA. Nevertheless, the fall could be capped by the 20-day EMA at 0.6701, a price level sought by buyers, as the last line of defense. A further decline could pave the way toward the April 13 low at 0.6685, followed by the weekly low at 0.6619.

It’s worth noting that the RSI (14) line still has some gap before it hits the overbought territory, which in turn suggests the AUD/USD pair’s limited upside room.

In a case where the quote rises past 0.6810, the 0.7000 round figure and a mid-February high of around 0.7030 will be in the spotlight.

On the contrary, the 100-EMA level of 0.6760 can restrict pullback moves of the AUD/USD pair, a break of which can recall the 0.6700 psychological magnet to the chart.

Even so, the Aussie pair buyers should remain hopeful unless the quote offers a daily closing below a five-week-old ascending support line, close to 0.66303 at the latest.

AUDUSD will be going to break the daily order block

Apr 15 2023