AUD/USD Holds Steady Amid Geopolitics and Crude Oil Price Volatility
The AUD/USD pair remained steady on Wednesday as investors focused on geopolitics and key macroeconomic indicators from the United States. The currency was trading at 0.7040, significantly higher than its low of 0.6865 last month.
The US dollar retreated modestly as traders adopted a risk-on sentiment following a sharp decline in crude oil prices. Brent, the global benchmark, dropped to $78 from its high of $100 last month, after President Donald Trump's decision to halt planned strikes against Iran raised concerns about supply shortages.
The next few days will be crucial for the AUD/USD pair as key economic indicators are set to be released in the US. The services PMI numbers, ISM and S&P Global figures, private payrolls data from ADP, and nonfarm payrolls data from the Bureau of Labor Statistics (BLS) will all have an impact on the Federal Reserve interest rate decision.
AUD/USD Technical Analysis
The four-hour chart shows that the AUD/USD pair has rebounded this month, moving from a low of 0.6923 to 0.7046 today. The current level is significant because it coincides with the highest swing on August 3.