Fed Rate Hike Bets Drag AUD/USD Lower Despite Weekly Gains
The AUD/USD pair closed the week in the red, down 0.45%, despite ending Friday's session in positive territory at 0.7171. This gain of 0.38% came amidst growing expectations that the Federal Reserve will raise interest rates next week.
From a technical perspective, momentum remains bullish, with the Relative Strength Index (RSI) indicating further upside for the pair. However, buyers must clear the high of the 'doji' formed on September 9 at 0.7237 to push prices higher.
If they succeed, the next ceiling level will be the May 6 high at 0.7277. Beyond that lies the 0.7300 milestone.
On the other hand, if the pair drops below the September 11 low of 0.7150, a move towards 0.7100 is possible. The next downside levels will be the 100-day Simple Moving Average (SMA) at 0.7080 and then the 50-day SMA at 0.7066.