AUD/USD slides below 0.7500 on Chairman Powell remarks
- AUD/USD fell in the last hour 40 pips as Fed’s Chairman Powell speaks.
- The market sentiment worsened, witnessed by US stocks falling on the back of Fed’s Powell.
- Powell speech: High inflation will likely last well into next year.
The AUD/USD retreats from daily highs around 0.7511, slides 0.07% during the New York session is trading at 0.7454 at the time of writing. The pair shed 40 pips in the last hour as Federal Reserve Chairman Jerome Powell hit the wires.
Powell speech: High inflation will likely last well into next year
On Friday, according to Reuters, Chairman Powell said that high inflation would likely last well into next year but added that they still expect it to move back down toward their 2% goal.
Furthermore, he added that “If we see persistent inflation, we would use our tools.” Concerning the labor market, he said that job growth could move back to higher levels witnessed the last summer, but it could take longer than the Fed thought.
Risk-off mood spurred by Fed’s Powell
Meanwhile, the market mood dampened as the New York session progressed. Major US equity markets lose between 0.19% and 1.14%, at press time, while the US Dollar Index edges lower 0.07%, sits at 93.71, following the US T-bond yields footsteps, with the 10-year yield dropping one a half basis point, currently at 1.662%.
AUD/USD Price Forecast: Technical outlook
The AUD/USD 1-hour chart depicts the pair briefly broke below Thursday low (0.7457), but at press time, the pair is at 0.7462, closing to the Friday’s open, but below the 100-simple moving average (SMA) at 0.7476, which could act as resistance.
For AUD/USD sellers, they would need a sustained break below 0.7453, so they could challenge the confluence of the S1 pivot point and the 200-SMA around 0.7433.
On the flip side, buyers will need to reclaim the 100-SMA. In that outcome, a challenge towards the daily pivot point at 0.7489, followed by the 0.7500 figure, is on the cards.