The Australian dollar keeps to a weak bias Thursday after following remarks by U.S. Federal Reserve Chair Jerome Powell that the U.S. central bank was “strongly committed” to bringing down inflation.
“We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so,” Powell told lawmakers at a hearing held by the Senate Committee on Banking, Housing, and Urban Affairs.
While testifying before the Senate Banking Committee, Powell said, “Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2%.”
Powell is due to testify again in Washington DC on Thursday (Friday, 12 am Sydney time).
Meanwhile, having failed to sustain a lukewarm start in the European session, the AUD/USD erased its gains on Wednesday and now holds above the key support at US$0.6845-55.
Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator remains buckled and holds to a negative bias, while the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias, with the ADX indicator holds to a weak bear trend.
As mentioned, market bulls are expected to regroup from the key support area at US$0.6845-55 and defend this region.
A clearance of US$0.6945 should ignite momentum to US$0.7000-15. Reassess from there.