AUD/USD Strategy - U.S. Economic Outlook Positive, AUD/USD Remains Weak

Fundamental Analysis:

Last night's U.S. economic and employment data showed signs of easing, deepening market expectations for a December rate cut by the Fed. This caused the dollar to weaken temporarily, providing an opportunity for non-U.S. currencies to rebound. However, this morning, the Fed's Beige Book indicated growth in multiple economic activities, with businesses more optimistic about the future. Coupled with Fed Chair Powell's statement that the current economy is performing better than previously expected, this may lead to a reduced rate cut pace next year, favoring the dollar's outlook and potentially driving non-U.S. currencies lower. Additionally, another employment data report will be released tonight. If the data remains strong, it will stabilize market views on the labor market and could further weaken non-U.S. currencies.

Technical Analysis:

On the hourly chart, AUD/USD resumed its downward movement after testing resistance and hit a new recent low. Additionally, moving averages are aligned in a bearish pattern, indicating continued weakness. However, the KD indicator shows a golden cross signal, suggesting that the pair might see a short-term rebound. Traders should avoid chasing the rebound and wait for the resistance at 0.6445 to open a light short position, targeting 0.6395 with a stop loss at 0.6480.

Trade Recommendation:

Wait for a rebound to the resistance level of 0.6445 to open a light short position.

Target: 0.6395. Stop Loss: 0.6480.

Support Level: 0.6395 Resistance Level: 0.6445

Disclaimer: The above content is for reference only and does not represent the platform's stance. Stick to your own analysis and implement proper risk management.