AUD/USD Price Outlook: Pulls back toward 0.7150 ahead of Warsh’s confirmation hearing
AUD/USD Slides as US Dollar Strengthens Ahead of Fed Chair Hearing
The AUD/USD currency pair is down by 0.35%, trading near 0.7150 during Tuesday’s European session. After Monday’s sharp rally, the Australian Dollar is retracing as the US Dollar gains momentum in anticipation of the confirmation hearing for President Donald Trump’s nominee, Kevin Warsh, who is set to become the next Federal Reserve Chair. The hearing is scheduled for 14:00 GMT.
Currently, the US Dollar Index (DXY)—which measures the Greenback’s performance against a basket of six major currencies—has climbed 0.25% to approximately 98.25.
Market participants are closely watching Kevin Warsh’s testimony, as his views on monetary policy will likely influence the US Dollar’s direction. Warsh, during his previous tenure at the Federal Reserve, was recognized for advocating a robust US Dollar and opposing the use of Quantitative Easing (QE) in the central bank’s balance sheet.
Additionally, the lack of official confirmation from Iran about resuming peace negotiations with the US has further boosted demand for the safe-haven US Dollar. Meanwhile, Washington has announced that Vice President JD Vance will travel to Pakistan to participate in ceasefire discussions with Tehran.
Technical Overview: AUD/USD
Despite trading lower near 0.7150, the AUD/USD pair maintains a positive technical outlook. The price remains above the 20-day Exponential Moving Average (EMA) at 0.7072 and continues to respect the broader upward trend that began near 0.69. The pair is consolidating close to recent highs, with the uptrend support line from the 0.6585 level and a key reference point around 0.6922 providing a solid foundation for further gains.
Momentum indicators remain favorable, as the 14-day Relative Strength Index (RSI) stays above 60.00, suggesting that buyers are still in control of the short-term trend, though the market has not yet entered overbought conditions.
- Support: Initial support is found at the 20-day EMA (0.7072), followed by stronger trend support near 0.6922. As long as the price holds above these levels, any pullbacks are likely to be limited, keeping the overall bias upward.
- Resistance: On the upside, the pair could target the multi-year high around 0.7222. A firm close above this level would open the door for a move towards 0.7300.
(This technical analysis was generated with the assistance of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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