drops sharply to near the psychological support of 0.6500 in the North American trading session on Wednesday. The Aussie pair weakens as the US Dollar (USD) bounces back strongly as traders doubt whether the (Fed) will cut interest rates again in the December meeting. (DXY), which tracks the Greenback’s value against six major currencies, rebounds to near 106.60.The probability of the Fed cutting interest rates by 25 basis points (bps) to 4.25%-4.50% in December has diminished to 56% from 83% a week ago, according to the CME FedWatch tool.Market speculation for Fed interest rate cuts in December has slightly diminished as investors expect President-elect Donald Trump’s economic agenda will boost United States (US) inflation and economic .The Australian Dollar (AUD) performs weakly even though the Reserve Bank of Australia (RBA) is expected to keep interest unchanged at 4.35% by the year-end. Governor Michelle Bullock maintained hawkish guidance in her remarks in the press conference after the policy decision on November 5, remaining cautioned about upside risks to inflation.AUD/USD retreats after failing to extend recovery above 38.2% Fibonacci retracement around 0.6535. The Fibo tool is plotted from the November 7 high of 0.6688 to the November 14 low of 0.6440 on an hourly timeframe. The asset wobbles around the 50-day Exponential Moving Average (EMA) near 0.6500.The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range suggesting a sideways trend.A decisive recovery move above the intraday high of 0.6545 could push the asset towards the round-level resistance of 0.6600, followed by the November 5 high of 0.6645.In an alternate scenario, the pair could witness a downside after sliding below the November 14 low of 0.6440, which would drag the asset toward the round-level support of 0.6400 and the August low of 0.6348
AUD/USD hourly chart(Click on image to enlarge)More By This Author:USD/CHF Price Forecast: Extends Recovery Above 0.8850 Pound Sterling Consolidates As Focus Shifts To BoE Hearings USD/JPY Bounces Back From 155.00 As BoJ Ueda Avoids To Provide Rate Hike Timing
AUD/USD Price Forecast: Slumps To Near 0.6500 As Fed Dovish Bets Ease
