AUD/USD Delivers Strong Recovery From 0.6500 On Subdued US Dollar

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  • AUD/USD recovers vertically from 0.6490 as the US Dollar turns subdued.
  • The market participants hope that the Fed will announce a rate cut in June.
  • Upbeat Caixin Manufacturing PMI improves the appeal of the Australian Dollar.

The AUD/USD pair delivers a V-shape recovery from 0.6490 as investors hope the Federal Reserve (Fed) will start reducing interest rates from the June policy meeting. The Aussie asset recovers sharply as the US Dollar comes under pressure.

There is a mixed action in the global market as S&P 500 futures are down in the European session while risk-perceived currencies are performing better against the US Dollar. The US Dollar Index, which measures the US Dollar’s value against six rival currencies, falls slightly to 104.00.

Market expectations for rate cuts by the Fed in the June meeting remain firm as the annual core inflation data grew at the slowest pace of 2.8% in their years. However, the Federal Reserve (Fed) is still not ready to unwind the restrictive policy stance sooner as they need more confidence that inflation will return to the 2% target.

Fed policymakers want to analyze more data to confirm whether January’s high inflation data was a one-time blip or price pressures are flaring up again.

Going forward, market participants will look to the United States Manufacturing PMI data for February, which will be published at 15:00 GMT.

Meanwhile, the Australian Dollar performs stronger on February's upbeat Caixin Manufacturing PMI. Surprisingly, the economic data rose to 50.9 from expectations of 50.6 and the prior reading of 50.8. The Australian economy is China's leading trading partner, and an improvement in the latter's economic prospects eventually strengthens the Australian Dollar's appeal.
 

AUD/USD

OVERVIEW
Today last price 0.650
Today Daily Change 0.0008
Today Daily Change % 0.12
Today daily open 0.65
TRENDS
Daily SMA20 0.6521
Daily SMA50 0.6615
Daily SMA100 0.6559
Daily SMA200 0.6562
LEVELS
Previous Daily High 0.6531
Previous Daily Low 0.6487
Previous Weekly High 0.6595
Previous Weekly Low 0.6522
Previous Monthly High 0.661
Previous Monthly Low 0.6443
Daily Fibonacci 38.2% 0.6514
Daily Fibonacci 61.8% 0.6504
Daily Pivot Point S1 0.6481
Daily Pivot Point S2 0.6462
Daily Pivot Point S3 0.6437
Daily Pivot Point R1 0.6525
Daily Pivot Point R2 0.655
Daily Pivot Point R3 0.6569

More By FX Street:

EUR/GBP Posts Modest Gains Above The Mid-0.8500s, Eyes On Eurozone HICP Data
USD/CHF Price Analysis: Rises To 0.8850 On Firmer US Dollar
USD/CAD Depreciates To Near 1.3560 On Higher Crude Oil Prices, US Manufacturing PMI Eyed

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