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23 May 2024,02:18

Market InsightsTrade Of The Day

Aussie Dollar Tumbles Following Hawkish FOMC

23 May 2024, 02:18

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Fundamental Analysis

* Hawk Shock: The Australian dollar has dropped against the US dollar following the release of hawkish minutes from the Federal Open Market Committee (FOMC). The minutes indicated that the Federal Reserve might raise interest rates if inflation necessitates such action. The minutes stated that various participants mentioned willingness to tighten policy further should risks to outlook materialize and make such action appropriate. Additionally, the FOMC minutes highlighted that Fed officials are still uncertain about the current level of policy restrictiveness and acknowledged that achieving confidence in inflation consistently reaching 2% would take longer than previously expected.

Technical Analysis

* Technical Breakout: AUDUSD was traded lower following recent breakout below the previous support level 0.6640. MACD which illustrate ongoing bearish momentum signal suggest the pair to further extend its losses.

* Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards 0.6560. Conversely, a potential trend retracement is also to be expected and the price could head back towards 0.67150 after it breaks back above the level 0.6640.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, the market will focus on upcoming U.S. data, including unemployment claims for the week ending May 18 and the release of the S&P Global PMIs, which could further influence the AUD/USD pair’s movement.

Know how to manage trading risks with risk management strategies.


Stay updated on US and Australian data, Fed updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

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