AUD Upswing: Market Sentiment and Technical Outlook

Australian Dollar Bounces Back: Market Sentiment and Technical Analysis"

The Australian Dollar (AUD) showcased resilience on Tuesday, recovering from intraday losses despite a lower opening in the capital market. The initial downtrend mirrored overnight declines on Wall Street but was offset by optimism regarding potential tariff reductions on Australian wine exports by China. However, concerns persisted as declines in property and mining sectors outweighed gains in consumer-related industries, fostering a sense of market pessimism.

Investors exercised caution ahead of crucial economic releases from Australia and the United States (US), keen on deciphering insights into both countries' monetary policy trajectories.

Technically, our bullish bias for AUD/USD remains intact. The recent price action saw a retest of the key support level at 0.65250 on February 24, followed by a subsequent bounce, emphasizing the significance of this level. Additionally, the price surged past the 100-day simple moving average (SMA), while the Stochastic RSI indicator indicates oversold conditions, poised for an upward movement.

In economic news, the Australian Consumer Confidence, as measured by ANZ-Roy Morgan, remained nearly unchanged at 83.2 for the current week, marking the 56th consecutive week below the 85 threshold. Looking ahead, investors await the release of the Australian Monthly Consumer Price Index on Wednesday and Retail Sales data on Thursday, offering further insights into the economic landscape.

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