Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Breaking news

NFP prints at 339k vs estimates of 190k, ave earnings in line at 0.3% MoM

AUD/USD Price Forecast: Aussie Slips on Chinese LPR & Risk Sentiment

AUD/USD Price Forecast: Aussie Slips on Chinese LPR & Risk Sentiment

Warren Venketas, Analyst
What's on this page


  • US debt ceiling discussions will lead the way this week.
  • China’s LPR remains steady as growth potential comes into question.
  • Fed speakers in focus for today.
  • AUD/USD consolidates as external factors dictate terms.
AUD Forecast
AUD Forecast
Recommended by Warren Venketas
Get Your Free AUD Forecast
Get My Guide


The Australian dollar looks to be facing another challenging week after US factors weighed on the pro-growth AUD. Beginning late on Friday, Treasury Secretary Janet Yellen addressed bank CEO’s and stated there may be a need for additional mergers due to the slew of bank failures seen over the last few months. This dampened risk sentiment leaving the AUD on the backfoot against the US dollar. Market caution gained traction over the weekend as optimism around the US debt ceiling was quickly dispelled when President Joe Biden mentioned that the demands from Republicans were ‘unacceptable’. President Biden and House of Representatives Speaker Kevin McCarthy will hash it out once more later today as time runs out.

That being said, Fed Chair Jerome Powell relayed a rather dovish statement last week which was largely lost in the debt ceiling shadow, hinting that the Fed may pause their hiking cycle. In summary, the week should be dominated by debt ceiling negotiations but Fed monetary policy should be a close second.

Earlier this morning China kept its 1 and 5-year Loan Prime Rates (LPR) unchanged. The increasing interest rate differential between the US and China has weighed on the Yuan and the PBoC’s desire to cut rates (as a stimulus measure) to meet their 5% GDP growth target. Commodity prices (Australian specific exports) have weakened thus exacerbating downside for the Aussie dollar.

Foundational Trading Knowledge

Commodities Trading

Recommended by Warren Venketas

Start Course

The day ahead will be led by Fed speakers (see economic calendar below) and it will be interesting to see how the scheduled officials react to Fed Chair Powell’s recent comments.



Source: DailyFX economic calendar


Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter



Chart prepared by Warren Venketas, IG

Daily AUD/USD price action reveals recent uncertainty in global markets as the pair fluctuates between the 0.6600 and 0.6800 psychological levels. The Relative Strength Index (RSI) further reiterates investor skepticism due to fundamental ambiguity. This week may be a ‘wait and see’ mindset from traders awaiting external cues.

Key resistance levels:

Key support levels:

  • 0.6620
  • 0.6565
  • 0.6500


IGCS shows retail traders are currently LONG on AUD/USD, with 73% of traders currently holding long positions. At DailyFX we typically take a contrarian view to crowd sentiment resulting but due to recent changes in long and short positioning, we arrive at a short-term upside disposition.

Contact and followWarrenon Twitter:@WVenketas

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.