AUD/USD tumbles below 0.6920 as market mood sours, Fed Powell eyed
FXStreet · 22 Jun 2022 104 Views
  • AUD/USD has slipped firmly below 0.6920 as a risk-off impulse has rebounded ahead of Fed Powell.
  • Investors should brace for a Double Distribution trading session which indicates more downside ahead.
  • The positive comments from the RBA minutes have failed to strengthen the aussie bulls.

The AUD/USD pair has witnessed a steep fall after slipping below the round-level support of 0.6940 in the Asian session. The asset is expected to display a bearish Double Distribution trading session. The major initiated the trading session with a minor consolidation and later the greenback bulls dragged the asset firmly. An intraday low of 0.6913 has been recorded at the press time and second inventory distribution is expected to take place later.

It looks like the positive minutes from the June monetary policy of the Reserve Bank of Australia (RBA) have failed to provide strength to the aussie bulls. As per the RBA minutes, the Australian economy doesn’t see any signs of recession in the current horizon. Household spending is resilient despite depreciated paychecks due to higher price pressures.

As per the minutes, the jobless rate is going to remain untouched while fixing the inflation mess, which indicates that the labor market in the Australian economy is extremely tight. A minor increase in the Unemployment Rate could be witnessed while addressing the inflation mess but that will be manageable. The only concern for the RBA is the lower wage growth rate, which is required to be accelerated at 3.5%.

Meanwhile, the US dollar index (DXY) is holding itself above Tuesday’s high at 104.60 as the negative market sentiment has rebounded. Investors are uncertain over Federal Reserve (Fed) chair Jerome Powell’s testimony, which is expected to bring more restrictive measures to contain the soaring inflation and on injecting liquidity into the economy.

AUD/USD

Overview
Today last price 0.692
Today Daily Change -0.0046
Today Daily Change % -0.66
Today daily open 0.6966
Trends
Daily SMA20 0.7093
Daily SMA50 0.712
Daily SMA100 0.7218
Daily SMA200 0.7238
Levels
Previous Daily High 0.6994
Previous Daily Low 0.6934
Previous Weekly High 0.707
Previous Weekly Low 0.685
Previous Monthly High 0.7267
Previous Monthly Low 0.6828
Daily Fibonacci 38.2% 0.6971
Daily Fibonacci 61.8% 0.6957
Daily Pivot Point S1 0.6935
Daily Pivot Point S2 0.6904
Daily Pivot Point S3 0.6875
Daily Pivot Point R1 0.6996
Daily Pivot Point R2 0.7025
Daily Pivot Point R3 0.7056

Affected Trading Instrument

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