Forex
AUD/USD Eyes Key Breakout Levels as Fed Interest Rate Hopes Drive Rally
AUD/USD is trying to break higher as traders wait on Federal Reserve interest rate decisions.
The Australian dollar has been rallying against the US dollar in August, with some market observers attributing this to a looser Federal Reserve narrative. However, Christopher Lewis, a technical analyst at DailyForex, notes that the market has become overdone and could be due for a pullback.
A break below 0.69 would indicate a bearish market trend, while breaking above 0.73 would signal a bullish breakout, according to Lewis. He believes that if interest rates in America continue to remain high but not worsen, this will contribute to the current market dynamics.