AUD/USD still caught in consolidation phase after August plunge

AUD/USD daily chart

The Aussie is now benefiting from a stronger Chinese yuan, as well as better risk sentiment overall. Stocks can rejoice as major central banks begin a new shift in rhetoric. It’s no longer about rate hikes in the current cycle, but how long can they keep rates at the so-called restrictive levels we see now.

The dollar is also slightly weaker after a strong performance yesterday, but AUD/USD has proven resilient, holding a rebound from short-term lows around 0.6357-64 in August and now early September.

That being said, the 0.6500 mark remains a critical zone that buyers must cross in order to solidify any reversal in momentum.

Otherwise, the pair is still very much stuck in a consolidation phase in and around this ~140 pip region until one of the key levels mentioned above gives way.


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