Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Australian Dollar Remains Volatile

By Kenny FisherForexSep 29, 2022 10:47AM ET
Australian Dollar Remains Volatile
By Kenny Fisher   |  Sep 29, 2022 10:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

AUD/USD has reversed directions today and is down 1.07%, trading at 0.6425.

Aussie Roller-Coaster Continues

The currency markets have been busy this week, and the Australian dollar hasn’t missed out on the action. On Wednesday, AUD/USD traded in a range of almost 200 points and ended the day with sharp gains of 1.3%, but has pared most of those gains today. The Aussie has found itself on a nasty downward trend and is down 5.3% in September.

Australia’s economy continues to perform well, and retail sales rose 0.6% MoM, above the consensus of 0.4%. This was slower than the super-strong gain of 1.3% in July, but household spending appears to be holding up, despite the Reserve Bank of Australia’s rate-tightening cycle and high inflation.

Unfortunately for the risk-sensitive Australian dollar, domestic data is not nearly as important as developments abroad, and the combination of a hawkish Federal Reserve and ominous developments in the Ukraine conflict have strengthened the US dollar and heightened risk aversion. With the Fed expected to continue with large hikes and Russia threatening to annex parts of Ukraine on Friday, the Australian dollar is likely to face further headwinds.

Fed officials have signaled that the current cycle may soon come to a close, but the markets aren’t expecting any easing until there are clear signs that inflation has peaked. Although CPI dropped in August, inflation was higher than expected, which poured cold water on any hopes of the Fed making a U-turn on policy. The markets have priced a terminal rate of 4.60%, and with a current benchmark rate of 3.25%, more rate hikes are clearly coming. The US economy is in solid shape, which will enable the Fed to continue raising rates in order to tame red-hot inflation.

AUD/USD Technical

  • AUD/USD has support at 0.6450 and 0.6363
  • There is resistance at 0.6598 and 0.6685

AUD/USD Daily Chart
AUD/USD Daily Chart

Australian Dollar Remains Volatile

Related Articles

Australian Dollar Remains Volatile

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email