Daily Price Outlook

The AUD/USD currency pair has been unable to halt its downward trend and remains offered at the 0.6600 level. It is under significant selling pressure and has dropped to its lowest point since late December, currently trading at 0.6568. There is a possibility of further declines as RBA Governor Lowe considers a break in the policy-tightening cycle.

Additionally, the AUD/USD currency pair has been under pressure due to hawkish remarks made by Federal Reserve (Fed) Chair Jerome Powell. Powell stated that strong economic data will most likely lead to higher interest rates than previously anticipated to combat inflation.

On the other hand, the Reserve Bank of Australia's (RBA) policy statement was dovish, combined with the continued upward trend of the US Dollar, putting significant pressure on the AUD/USD pair. As a result, the Australian Dollar is currently the worst-performing G10 currency.

Feds Hawkish Stance & Bullish US Dollar

Federal Reserve Chairman Jerome Powell has indicated that strong economic data will likely lead to higher interest rates to curb inflation. As a result, the market-implied probability of a 50 basis point rate hike in March has increased from 30% to 50%, according to CME Group's interest-rate futures.

Market participants expect the Federal Reserve to maintain its hawkish stance and raise interest rates for a longer period to combat persistent inflation. This is contributing to a strongly offered tone around the AUD/USD pair.

Additionally, the US dollar has risen to a three-month high against a basket of currencies, with both the dollar index and dollar index futures climbing around 0.2%, reaching their highest levels since early December.

Reopening of Chinese Economy

RBA Governor Lowe stated that the reopening of the Chinese economy is expected to have a positive impact on the Australian economy. This is due to the fact that China is one of Australia's largest trading partners, and a boost in Chinese economic activity can result in increased demand for Australian exports, such as natural gas, coal, and iron ore.

This statement was seen as a positive development that could help the AUD/USD pair recover some of its strength.

AUD/USD Intraday Technical Levels

Support      Resistance

0.6708         0.6762

0.6686         0.6792

0.6655         0.6815

Pivot Point: 0.6739

AUD/USD – Technical Outlook

The AUD/USD pair has broken below the 0.6665 level and is currently trading bearishly toward the second target of 0.6550. It is moving within a bearish channel, which increases the chances of further bearish correction and a potential decline toward 0.6400.

The EMA50 continues to provide support for the bearish wave, and negative momentum may be required to achieve the necessary break and reach the expected target.

However, if the pair manages to breach the 0.6665 level, it could stop the expected decline and initiate recovery attempts, with an initial target of 0.6780. The expected trading range for today is between 0.6500 support and 0.6620 resistance.

Daily Price Outlook

The price of gold (XAU/USD) has been continuously dropping with no signs of an impending reversal. It is currently trading around the $1,812 level, indicating that sellers are willing to part with gold at that price.

This decrease in gold prices is attributed to the recent remarks made by Federal Reserve Chair Jerome Powell, which were deemed "hawkish." This suggests a more aggressive approach to monetary policy in order to combat inflation.

As a result, investors have redirected their attention to other investments such as stocks, which offer potentially higher returns. Additionally, the bullish bias of the US dollar, fueled by the Fed's hawkish stance, is also seen as a major factor that is exerting further downward pressure on gold prices.

Typically, gold and the US dollar have a negative correlation, meaning that when the value of the US dollar increases, the price of gold tends to decrease, and vice versa.

US Dollar Jumps on Powell's Remarks

On Wednesday, the US dollar gained significant support and reached a three-month high against a range of currencies. This was due to the surge in Treasury yields following Federal Reserve Chair Jerome Powell's suggestion that interest rates are likely to climb faster than what the market had forecasted.

Powell stated that the recent release of strong economic statistics would likely result in higher interest rates than previously anticipated to combat inflation.

Investors perceived this as a more aggressive monetary policy approach, leading to speculations of a 50 basis point interest rate hike in March instead of the previously predicted 25 basis point increase. CME Group's interest-rate futures show the market-implied probability of a 50 bps raise at the FOMC meeting in March increased from around 30% to 50%.

Therefore, the increase in the value of the US dollar had a significant adverse effect on the price of gold. This is due to the negative correlation between gold and the US dollar, which means that when the value of the US dollar rises, the price of gold tends to fall, and vice versa.

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1825            1846

1813            1856

1803            1868

Pivot Point: 1835

Gold (XAU/USD) – Technical Outlook

Yesterday, the price of gold experienced a significant decline, breaking below the key level of $1828.70 and closing the daily candlestick below it. This has once again put the price under bearish pressure, with a potential target of $1788.20.

The bearish channel is guiding this downward trend, and the EMA50 is providing additional downward pressure on the price.

Although the Stochastic indicator is currently showing some positive momentum, it is not expected to significantly slow down the bearish wave. Unless the price can rally to break above $1828.70, followed by $1848.00 and maintain levels above them, the bias for today remains bearish. For today's trading, the expected range is between support at $1790.00 and resistance at $1825.00.

Daily Price Outlook

The AUD/USD

The Yellow-Metal Prices Has Failed To Stop Its Losing Streak & Remained Well Offered Around the 1,812 Level Amid Powell’s Hawkish Comments

The gold price has been falling and has not yet shown any indications of reversing course. It is currently being offered at around the 1,812 level, which means that people are willing to sell gold at that price.However, the reason for this decline in gold prices is attributed to the recent comments made by Jerome Powell, the chairman of the Federal Reserve. His remarks were considered "hawkish," which means that he expressed a more aggressive stance on monetary policy to curb inflation.

This has caused investors to shift their focus towards other investments, such as stocks, which offer potentially higher returns. Furthermore, the US dollar's bullish bias, driven by Fed's hawkish stance, was seen as another key factor that put p=furthr pressure on the gold prices as the gold and the US dollar typically have a negative correlation. This means that when the value of the US dollar rises, the price of gold tends to fall, and when the value of the US dollar falls, the price of gold tends to rise.

US Dollar jumps on Powell

The broad-based U.S. dollar gained substantial support and reached a three-month high against a bucket of currencies on Wednesday, tracking a surge in Treasury yields after Federal Reserve Chair Jerome Powell suggested that interest rates were likely to climb faster than market forecasts.

Federal Reserve Chairman Jerome Powell recently stated that the previously released slew of strong economic statistics will most likely lead to higher interest rates than previously anticipated to combat inflation.

Market participants interpreted this as a hawkish stance on monetary policy. This led to increased expectations of a 50 basis point interest rate hike in March, as opposed to the previously predicted 25 basis point increase.

According to interest-rate futures monitored by CME Group, the market-implied probability of a 50 bps raise at the FOMC meeting in March jumped from around 30% to 50%.

Hence, the rise in the value of the US dollar had a significant negative impact on the price of gold. This is because gold and the US dollar typically have a negative correlation, meaning that when the value of the US dollar goes up, the price of gold goes down, and vice versa.

AUD/USD Price Chart - Source: Tradingview

AUD/USD Intraday Technical Levels

Support      Resistance

0.6708         0.6762
0.6686         0.6792
0.6655         0.6815
Pivot Point: 0.6739

AUD/USD – Technical Outlook

The AUD/USD pair has been trading sideways recently, with its stability remaining below 0.6780. It is still moving within a bearish channel on the chart, supporting our view and targeting the next level of 0.6665.

The EMA50 is also supporting this bearish trend. However, if the pair manages to break above 0.6780, it could stop the current bearish correction and lead to an attempt to regain the primary bullish trend.

The expected trading range for today is between 0.6670 support and 0.6780 resistance.

Daily Price Outlook

The AUD/USD is trading at 0.6713, having declined by 0.21% in the last 24 hours. The pair suffered significant losses due to China's failure to meet its GDP target and the Reserve Bank of Australia's rate announcement.

China disappointing GDP target

Over the weekend, the Chinese government announced a 5% GDP target for 2023, which is lower than the previous year's target of 5.5%. This figure was below market expectations and indicated Beijing's relatively cautious approach toward an economic recovery this year.

Despite business activity expanding at its highest rate in almost a decade in February after the removal of anti-COVID restrictions, the lower GDP target dampened hopes for a Chinese economic revival.

In addition, currencies that are sensitive to the Chinese economy, such as the Australian dollar, fell after the disappointing GDP target announcement.

RBA Rate Statement

On Tuesday, the Reserve Bank of Australia (RBA) raised interest rates, as expected, to control inflation, reaching a 10-year high. The RBA raised the cash rate target by 25 basis points to 3.60%, and it also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.50%.

RBA Governor Philip Lowe stated that Australia's inflation had likely peaked and was expected to moderate in the coming months. He added that the RBA would continue to follow a data-driven approach for future rate hikes. However, he warned that the Australian economy's path to a soft landing is narrow.

Although the RBA's decision to raise the benchmark interest rate was in line with market expectations, the lack of any hawkish surprise appears to have weighed on the AUD. As a result, the Australian dollar experienced a significant decline.

Powell testimony approaches

Today during the US session, Powell is scheduled to speak before Congress and provide insight into the timeline for the direction of interest rates. However, market participants are uncertain what tone the Fed Chair will take, given that while inflation unexpectedly jumped in January, other economic data showed that the US economy was slowing down.

If Powell takes a more hawkish stance, it will improve expectations for US interest rate action and support the Dollar. Currently, DXY is trading lower at around 104.23.

The nonfarm payrolls report for February, which will be released on Friday, is also a key focus this week. Further indications of job market strength would give the Fed more flexibility to raise rates.

AUD/USD Intraday Technical Levels

Support      Resistance

0.6708         0.6762

0.6686         0.6792

0.6655         0.6815

Pivot Point: 0.6739

AUD/USD – Technical Outlook

The AUD/USD pair has been trading sideways recently, with its stability remaining below 0.6780. It is still moving within a bearish channel on the chart, supporting our view and targeting the next level of 0.6665.

The EMA50 is also supporting this bearish trend. However, if the pair manages to break above 0.6780, it could stop the current bearish correction and lead to an attempt to regain the primary bullish trend.

The expected trading range for today is between 0.6670 support and 0.6780 resistance.

Daily Price Outlook

The USD/JPY pair is currently trading around 136.00. Investors are closely watching Federal Reserve Chair Jerome Powell's speech for any indications about US monetary policy, causing the pair to remain within a narrow trading range.

Jerome Powell's Upcoming Speech: What to Expect and Its Potential Impact on the Markets

Investor sentiment remains positive towards the US economy despite a tight labor market, rising inflation, and strong service sector activity. However, concerns remain about the vulnerability of the industrial industry.

A recent report indicated a 1.6% decline in factory orders in January, slightly better than the expected decline of 1.8%. Excluding transportation, factory orders rose by 1.2%.

Following the recent report, the US Dollar Index dropped below 104.30, and the softer USD kept the USD/JPY pair in check. Market participants are now waiting for crucial events, including Fed Chair Jerome Powell's speech on Tuesday and the NFP data release on Friday, for more insight into monetary policy.

Jerome Powell, the head of the Federal Reserve, is scheduled to deliver a speech to Congress where he is expected to provide an update on the status of the US economy and the central bank's monetary policy plans.

Analysts predict that Powell may suggest that recent economic data may require higher interest rates than expected. Investors will be closely monitoring Powell's remarks as any hawkish indications he provides could lead to market volatility.

BoJ Policy Meeting in Focus as Markets Await Key Announcements

In Japan, there has been a concerning drop in real wages in January, with the worst decline seen in over nine years. Data revealed that all cash wages only increased by 0.8% year over year in January, which is significantly lower than the 4.1% growth seen in December.

The Bank of Japan's (BoJ) monetary policy is focused on wage growth, and Governor Kuroda has stated that he will not tighten monetary policy until there is evidence that wage growth, rather than external factors such as commodity prices, is the primary driver of inflation.

Furthermore, Governor Kuroda is set to step down after the BoJ policy meeting on March 10. Many speculate that he will use this opportunity to start policy normalization by revising the Yield Curve Control (YCC).

Despite the recent decline in the USD/JPY pair, yen buyers remain optimistic due to speculations that Kuroda will make significant moves before his departure.

USD/JPY Intraday Technical Levels

Support      Resistance

135.52         136.32

135.04         136.66

134.71         137.13

Pivot:          135.85

USD/JPY  – Technical Outlook

The USD/JPY pair remained steady around the EMA50, with no significant movements since yesterday. The bearish trend scenario remains unchanged, pending a breakout from the correctional bullish channel. The pair is expected to visit levels of 134.55 and 133.30.

The Stochastic indicator shows a loss of positive momentum, supporting the expected decline. Breaking above 136.45 could lead to a rise toward the 137.70 level before further direction is determined.

Today's support level is 135.00, while the resistance level is 136.50.

Daily Price Outlook

The GBP/USD pair is currently trading at 1.2045, reflecting a 0.20% increase in the past 24 hours. The pair has been supported by the weakness of the US dollar.

UK Construction Sector Sees Fastest Economic Activity Growth in February

The UK construction sector experienced a significant increase in overall economic activity in February after a two-month decline. The UK PMI construction index rose to a 9-month high of 54.1 in February from 48.4 in January, surpassing consensus expectations of 49.1.

The commercial construction sector performed the best in February with an index of 55.3, showing the fastest increase in nine months. Civil engineering activities also increased in February (index 52.3), but at a slower pace.

Based on the latest data, employment levels in the construction industry have seen a slight increase. Furthermore, the significant rise in output in the previous month presents a positive outlook for the construction industry as a whole. This data has had a positive impact on the GBP, indicating that the UK's construction industry is improving.

US Economy

In the US, inflationary pressures have put Jerome Powell, the head of the Federal Reserve, in the spotlight as he prepares to address Congress today. Powell is expected to provide an update on the state of the US economy and discuss the central bank's plans for monetary policy.

In addition, the non-farm payroll data for February is set to be released on Friday. It is expected to show a significant drop compared to January, bringing job openings back to the typical range of around 200,000. If the data meets expectations, it could indicate a tight labor market, thereby strengthening the US dollar.

The US dollar has weakened against a range of global currencies prior to Powell's testimony and the release of the jobs report. The DXY is currently trading lower, around 104.23. However, if Powell's tone becomes more hawkish, it may strengthen the dollar and increase expectations for the US interest rate movement.

GBP/USD Intraday Technical Levels

Support      Resistance

1.1997         1.2052

1.1967         1.2079

1.1941         1.2108

Pivot Point: 1.2023

GBP/USD – Technical Outlook

From a technical perspective, the GBP/USD pair has found support at the 1.2015 level, and a bullish rebound may occur if candles close above this level.

The pair may face immediate resistance at the 1.2045 level, driven by a double-top pattern that has persisted in the past.

A break above the 1.2145 level may lead to further upward movement in the GBP/USD price.

Daily Price Outlook

The EUR/USD pair is currently trading at 1.0644. It closed the previous week on a bullish note, providing a positive outlook for traders who are bullish on the pair. Last week, there were positive inflation indicators in the Eurozone, including the CPI and the Harmonized Index of Consumer Prices (HICP), which supported the hawkish stance of the European Central Bank (ECB).

However, the Producer Price Index (PPI) for January showed a drop of -2.8%, which was a concern for the ECB's hawkish attitude as it was predicted to decline by only 0.3%.

On Friday, Botjan Vasle, a European Central Bank's (ECB) Governing Council member, expressed his belief that the 0.5 percentage point hike planned for the March meeting will not be the final one. Similarly, Madis Muller, another ECB Governing Council member, also suggested that there may be further interest rate increases in March. However, ECB Vice President Luis de Guindos stated that future interest rate decisions depend on the data.

As a result of the hawkish statements from ECB officials, the Euro has seen a rise in market sentiment regarding rate increases. Additionally, traders are currently awaiting the Eurozone Retail Sales report for February, which may limit the rapid movements of the EUR/USD pair.

US Economic Concerns Affect EURUSD Pair Trading

The US data released last week has increased uncertainty about the hawkish Federal Reserve's (Fed) concerns. The US ISM Services PMI for February was 55.1, below market expectations of 55.2. The US Durable Goods Orders for January fell earlier in the week, and the CB Consumer Confidence showed negative results.

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, has raised concerns about the Fed's policy reversal and speculated that the bank might be able to halt the tightening cycle by mid-to-late summer. However, the US Federal Reserve's semi-annual Monetary Policy Report explicitly stated that raising the Fed funds rate goal is necessary. The Fed is committed to getting inflation back to 2%.

Despite the US monetary policy report's emphasis on continuing rate hikes, the US Dollar Index (DXY) is currently trading lower at 104.53, indicating little market excitement.

Market analysts predict that the Federal Reserve's target rate could peak in the coming months before the bank either pauses or adjusts its hawkish stance in response to mounting economic pressures.

Today, traders eagerly anticipate the release of the US Factory Orders report for January, while the focus for the week remains on the upcoming release of US nonfarm payroll data for February and Fed Chief Jerome Powell's testimony scheduled for Tuesday.

EUR/USD Intraday Technical Levels

Support      Resistance

1.0618         1.0633

1.0609         1.0639

1.0603         1.0648

Pivot Point: 1.0624

EUR/USD – Technical Outlook

The EUR/USD pair is currently testing the key resistance level of 1.0650 after returning to positive trading. This development warrants caution in upcoming trades, as the price must remain below this level to maintain the bearish trend scenario for the near future.

The Stochastic indicator is losing its positive momentum, indicating overbought signals that may help push the price downwards toward our primary target of 1.0515. We maintain a bearish outlook, with a breach of 1.0650 halting the negative scenario and potentially leading to additional gains up to the next target of 1.0745.

Daily Price Outlook

The S&P500 (SPX) is currently trading at $4,045.64, representing an increase of 1.61% in the past 24 hours. The surge in the S&P 500 was due to the decrease in US Treasury rates and investors' acceptance of the increasing possibility that the Federal Reserve will maintain its tight monetary policy until the end of the year.

Fed rate hikes speculations

The previous week's US statistics sparked concerns about the hawkish stance of the Federal Reserve (Fed). However, the Fed's semi-annual Monetary Policy Report released on Friday stated explicitly that the Fed funds rate target must continue to increase, with a commitment to bringing inflation back to 2%.

Investors will be watching the US employment data for February on Friday and Jerome Powell's testimony before Congress for any updates on the direction of interest rates.

Powell is scheduled to speak before Congress and provide the central bank's semi-annual report on monetary policy, speaking before the Senate on Tuesday and the House of Representatives on Wednesday.

Market participants will closely watch his comments for indications of whether a higher rate rise is being considered this month after recent US statistics indicated continuing inflation.

Traders expect the Fed to raise interest rates by another 25 basis points this month, with market pricing now indicating a higher probability of a rise than in the past. The dollar held steady on Monday at around 104.43 after facing severe losses the previous week. The US 10-Year Bond Yield fell by 0.68% to 3.936.

Corporate earning

Due to high inflation and the Federal Reserve's interest rate hikes, corporate America has experienced some sharp and disappointing earnings results. Almost 99% of S&P 500 companies have already released their Q4 earnings, and the results have been particularly disappointing for the tech sector.

IT companies had a dismal performance in the last quarter, with Apple reporting an unusual earnings miss, while Intel and Alphabet, the parent company of Google, underperformed forecasted earnings.

However, not all was negative, as energy firms generated record profits for another quarter, with Chevron, ConocoPhillips, Exxon, and Shell recording their most profitable years ever. Tesla also announced record revenue growth and exceeded profit expectations. Target and Walmart also outperformed forecasts as US consumers continued to spend.

On average, S&P 500 index business earnings last quarter were only slightly above analyst expectations by around 1.3%.

S&P500 Intraday Technical Levels

Support      Resistance

3943            4005

3904            4029

3880            4068

Pivot Point: 3967

S&P500 – Technical Outlook

From a technical perspective, the S&P 500 (SPX) has rebounded from the support zone at the $3,930 level. The appearance of the "three white soldiers" pattern in the 4-hour timeframe increases the possibility of a bullish rebound.

On the upside, the SPX's immediate resistance level is at $4,095, supported by a 61.8% Fibonacci correction level. A bullish breakout of the $4,035 level may lead to further gains toward the $4,200 mark.

However, in the event of a breakdown below the support level of $3,930, the SPX may drop toward the next support level at $3,880.

Daily Price Outlook

The BTC/USD is trading at $22,344, a 0.49% decrease over the past 24 hours. Last week, Silvergate made headlines for delaying its annual 10-K financial report submission, which raised concerns about potential bankruptcy. A potential failure of the cryptocurrency bank could have negative repercussions for the rest of the sector.

Silvergate announced on March 3rd that it had made a "risk-based decision" to halt its cryptocurrency payments network, the Silvergate Exchange Network (SEN), just two days after the digital asset-focused bank expressed doubts about its viability. However, all other deposit-related services are still functioning normally.

Most of Silvergate's cryptocurrency customers, including Coinbase, Paxos, Galaxy Digital, and Crypto.com, immediately cut ties with the bank during the turmoil.

Following Silvergate's liquidity issues and other cryptocurrency-related problems, the market leader in cryptocurrencies, BTC/USD, experienced a sharp decline.

Upcoming Interest Rate Hikes by the US Federal Reserve

The US Federal Reserve's semi-annual Monetary Policy Report, which was released last Friday, stated that the Fed funds rate target must continue to rise in order to get inflation back to 2%. However, despite the report, the US Dollar Index (DXY) is now trading lower at 104.48.

Investors are eagerly anticipating the US employment figures for February, which will be released on Friday, and Jerome Powell's speech before Congress on Tuesday, for any hints on the future path of interest rates.

Market players will pay close attention to Powell's remarks to determine whether he intends to raise rates this month, following recent strong inflation figures. Traders are now expecting the Fed to raise interest rates by 25 basis points this month.

In addition, when interest rates increase, crypto values tend to decline due to the spillover effect. As a result, concerns over more rate hikes are putting pressure on BTC/USD.

Santiment Spots Strangely Negative Sentiment in the Cryptocurrency Market

The market intelligence platform Santiment has been analyzing social analytics and on-chain data to provide insights into the cryptocurrency market. According to a tweet by Santiment on March 5, there has been a continuously strong negative sentiment against cryptocurrencies. It is difficult to pinpoint the primary cause of one of the highest levels of fear, uncertainty, and doubt (FUD) ever seen by Santiment.

Santiment's social research indicates that most of the negative sentiment surrounding the cryptocurrency industry came from Twitter. The amount of unexpectedly aggressively negative tweets on the cryptocurrency market is unusually high. The hashtag #cryptocrash was also a popular off-and-on trending hashtag on the network before the decline in BTC/USD.

Bitcoin Price Chart - Source: Tradingview

BTC/USD Intraday Technical Levels

Support     Resistance

22221          22646

22010          22860

21796          23071

Pivot Point: 22435

BTC/USD – Technical Outlook

At the moment, Bitcoin is being traded at $22,360 with a trading volume of $12.8 billion over the past 24 hours, marking a decrease of 0.50%. Bitcoin is currently ranked at the top of the CoinMarketCap rankings with a live market cap of $431 billion.

Technical analysis suggests that there is a possibility of the BTC/USD pair breaching the symmetrical triangle pattern at the $23,250 level, which may expose the BTC price to the $22,046 support zone. If BTC breaks down further below this support zone, it could drop to $21,450.

A bearish engulfing candlestick pattern indicates a significant selling bias in the BTC/USD pair. However, if the candles manage to close above this level, there is potential for a bullish bounce-off towards the $22,800 mark or even higher, with a possible target of $23,750.

Daily Price Outlook

The AUD/USD pair is trading at $0.6743, representing an increase of 0.21% in the past 24 hours. Traders are closely analyzing the comments made by Federal Reserve officials while also waiting for China's upcoming legislative meeting to gauge the level of economic support that could be expected. Despite these factors, the Australian dollar has remained steady.

Chinese Economy and Its Impact on AUD/USD

The Chinese economy is making significant progress toward economic recovery after lifting Covid restrictions. The government and the People's Bank of China (PBoC) are committed to boosting domestic demand by implementing further stimulus and reform initiatives.

In addition, according to a report by S&P Global released on Friday, China's services sector experienced growth in February due to increasing demand. The report indicates that the Caixin Services PMI rose from 52.9 in January to 55.0 in February, showing a consecutive month-over-month improvement in activity.

It is worth noting that Australia is China's top trading partner, and an increase in China's service PMI benefits the Australian Dollar.

All eyes are now on China's annual parliamentary session, which is set to take place on Sunday. Beijing will announce new policy measures to support economic growth and targets.

RBA's Interest Rate Guidance

Despite a recent decline in Australia's Consumer Price Index (CPI), the Reserve Bank of Australia (RBA) remains steadfast in its hawkish outlook. RBA policymakers have not indicated that Australian inflation has peaked so the central bank will maintain a hawkish position.

A recent Reuters survey on the RBA's interest rate guidance reveals that the central bank is expected to increase its interest rate by 25 basis points (bps) to 3.60% on Tuesday, March 7.

The survey predicts that the RBA will increase its interest rate again in Q2 before pausing until next year, resulting in a higher peak rate than anticipated. Further rate hikes may support the Australian Dollar (AUD).

Dollar Under Pressure

On Thursday, Raphael Bostic, the president of the Atlanta Federal Bank, suggested that the current tightening cycle by the Federal Reserve could end by mid-summer. While he supports a 25 basis point rate hike in March, he is open to reconsidering a more hawkish outlook if inflation and labor market figures show improvement.

Bostic's comments have pressured the US Dollar Index (DXY), currently trading at 104.89. Later today, the US Institute of Supply Management (ISM) will release data on the Services PMI (Feb), potentially supporting the US Dollar.

AUD/USD Intraday Technical Levels

Support      Resistance

0.6700         0.6762

0.6672         0.6796

0.6639         0.6824

Pivot Point: 0.6734

AUD/USD – Technical Outlook

Yesterday, the AUDUSD pair traded negatively and approached the 0.6700 level. There is some bullish bias in the market due to stochastic positivity. The following support level is at 0.6665, and the pair must remain below 0.6780 to continue the projected downtrend.

The EMA50 is still supporting the bearish wave within the negative channel. Today, the trading range is expected to be between the support level of 0.6670 and the resistance level of 0.6780.