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The AUD/USD pair is holding on to its long-term bullish trend around 0.7300, unchanged for a second consecutive week, despite there were quite a few headlines that could have spurred action, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“This past week was the turn of the US Federal Reserve, which, as widely expected, kept rates at record lows near zero, and formalize the new framework focused on targeting average inflation. The Fed’s stance was quite similar to that of the Reserve Bank of Australia (RBA), which met earlier this month. A modestly optimistic upgrade of the economic outlook, covered with a good dose of uncertainty and linked to the pandemic developments.”

“The Fed’s stance was quite similar to that of the RBA, which met earlier this month. A modestly optimistic upgrade of the economic outlook, covered with a good dose of uncertainty and linked to the pandemic developments. Policymakers from around their world pledged to keep supporting the economy but refrained from making new announcements for the near-term.”

“Good news in Australia fell short of boosting the Aussie. According to the official release, the country added  111K new jobs in August, while the unemployment rate fell to 6.8%, beating expectations, despite the lockdown in Victoria. In the region, however, 42.4K lost their jobs. Also, coronavirus cases in the country continued to ease, which lead to a lift to the travel cap for citizens abroad.” 

“The upcoming week will be quite light in terms of macroeconomic data, as Australia will only publish the preliminary estimates of the September Commonwealth Bank PMIs. Manufacturing activity is seen falling again into contraction territory, as the index is foreseen at 48.3 from 53.6, while services output is expected to have shrunk further, down from 49 to 48.3. The US, on the other hand, will see Fed’s chief Powell testifying before the Congress, the September preliminary Markit PMI and August Durable Goods Orders.”

“A relevant support level is 0.7190, followed by the 0.7100 figure. Given the persistent dollar’s weakness, it seems quite unlikely that the pair could fall below this last. Resistances for the upcoming days stand at 0.7350 and 0.7413, the high set this September.”