Flaunt Weekly
EntertainmentAUD/USD soars to 0.6718 amid catastrophic SVB bank collapse
AUD/USD soars to 0.6718 amid catastrophic SVB bank collapse

AUD/USD soars to 0.6718 amid catastrophic SVB bank collapse

  • The AUD/USD currency pair starts the week positively, trading at 0.6716 at the press time, up by 2.11% on the day.
  • Technical indicators, such as the daily 20-SMA and 50-SMA, suggest a potential bullish outlook for AUD/USD.
  • SVB banking catastrophe’s ripple effects and the consequences of the Fed’s rate hike decision support the pair.

Daily price movements:

AUD/USD currency pair opens the first day of a new week at 0.6575, with an intraday high of 0.6718 and a low of 0.6577. The pair trades at 0.6716 at the press time, up by 2.11% on the day, just below Monday’s ATH price.

The recent issues with Silicon Valley Bank (SVB) and Signature Bank have highlighted the vulnerable state of US banks, which has dampened expectations for additional interest rate increases from the Federal Reserve (Fed). As a result, Goldman Sachs now predicts a delay in rate hikes in March, and the Fed Fund futures

have reduced the likelihood of a 0.50% increase in the Fed rate. Consequently, the US Dollar Index (DXY)

has fallen to its lowest level in a month, trading near 103.60 at the press time.* Fed Fund futures directly reflect collective marketplace insight regarding the future course of the Federal Reserve’s monetary policy. (Source :

CME Group’s website)

Key economic events: Investors will be closely watching the US Consumer Price Index (CPI)

(excluding Food and Energy) data for February, set to be released on Tuesday, to gain a better understanding of potential Federal Reserve (Fed) actions on the pace of interest rate increases, which could impact the strength of the US Dollar. Additionally, both the Employment Change s.a. (Feb) and Unemployment Rate s.a. (Feb) released by the Australian Bureau of Statistics on Thursday will be the key economic events for AUDthis week


Technical view: Technical indicators suggest a potential bullish outlook for the AUD/USD in the short term. The 20-day SMA and 50-day SMA are at 0.6777 and0.6885 respectively, indicating a possible bullish trend. The daily 38.2% Fibonacci level is at 0.6593, with the 61.8% Fibonacci level at 0.6611. The RSI(14) is at44.516

indicating potential bullish momentum. Resistance levels for AUD/USD are at 0.6623, 0.6670, and 0.6699, while support levels stand at 0.6547, 0.6517, and 0.6471. The daily pivot point is at 0.6594.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.Read More

Greg Aftayev is a Journalist at Flaunt Weekly Covering Tech News.

Magazine made for you.