AUD/USD Pair Faces Choppy Market Ahead of Key Support Level
The Australian dollar has experienced a significant decline in September, but this may not necessarily be a cause for concern in Australia. The main issue is that interest rates in the US continue to rise.
When looking at the longer-term charts, it's clear that the AUD/USD pair is currently within a range. A major support area is around 0.69, which opens up the possibility of a bounce later this month.
The external factors affecting the AUD/USD pair are numerous, including the ongoing tensions in the Middle East. The uncertainty surrounding the resolution between the US and Iran continues to contribute to inflation being priced into the bond market. As long as yields in the US rise, it's likely to favor the US dollar.
The Reserve Bank of Australia (RBA) did hike rates again, sounding somewhat hawkish in the process. However, Christopher Lewis, a technical analyst at DailyForex, is not counting out the Aussie dollar. He believes that traders may continue to look to Australia as one of the beneficiaries of rising commodity prices, although it will have its own inflation issues.