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The Australian Dollar (AUD) remained stable on Thursday, following two consecutive days of losses. The AUD/USD pair may experience gains as the US Dollar (USD) faces pressure, with the Federal Reserve's Beige Book indicating a weakening economic outlook.
According to the Fed’s April Beige Book, concerns about tariffs have worsened the economic situation in several US regions. Consumer spending showed mixed results, while the labor market displayed signs of slowing, with many districts reporting flat or slightly declining employment.
US President Donald Trump stated that the timing of tariff reductions is up to China, adding that the US will determine tariff rates in the next two to three weeks. He emphasized that if no deal is reached, the price will be set, and it will be up to China to decide whether to proceed. Trump also noted that China is not currently doing business with the US, with the tariff rate still at 145%. Meanwhile, National Economic Council Director Hassett mentioned on Wednesday that a full trade deal with China could take 2-3 years.
As of Thursday, the AUD/USD pair is trading around 0.6360, with technical indicators on the daily chart showing a bullish outlook. The pair remains above the nine-day Exponential Moving Average (EMA), and the 14-day Relative Strength Index (RSI) stays above 50, suggesting ongoing upward momentum.
On the upside, immediate resistance is at the recent four-month high of 0.6439, reached on April 22. A decisive break above this level could lead to a rally toward the five-month high of 0.6515.
On the downside, the pair is testing immediate support at the nine-day EMA at 0.6346, with stronger support near the 50-day EMA at 0.6296. A sustained drop below these levels could weaken the bullish outlook, potentially leading to further losses, with the March 2025 low around 0.5914 becoming a key target.
Paraphrasing text from "FXSTREET"all rights reserved by the original author