AUD/USD: the Australian dollar is trying to consolidate above the March 23 March 2023 highs

It shows a confident growth, actively testing the level of 0.6740 for a break-up and trying to consolidate above the local highs of March 6, which were updated the day before, when the instrument reacted to the U.S. Federal Reserve's interest rate decisions.

As expected, the regulator raised the cost of borrowing by 25 basis points to 5.00%, a new high since 2007. At the same time, Fed Chief Jerome Powell did not disclose plans for further adjustments to the value this year, and the median forecast for the index at the end of 2023 is still at 5.10%. The accompanying statement only noted that some additional increase may be "appropriate. Immediately after the announcement of the US FRS decision, the national currency was under pressure, but closer to the close of the day's session the instrument managed to win back.

Today, investors will focus on statistics from the USA on the dynamics of citizens' applications for unemployment benefits. Initial claims are expected to rise back above the 200.0k psychological mark, from 192.0k to 201.0k, while the number of reapplications for the week of March 10 may adjust from 1.684 million to 1.701 million.

On Friday, March 24, March business activity data from Australia will be released. Current forecasts suggest a decline in the services sector from 50.7 points to 49.9 points and in the manufacturing sector from 50.5 points to 50.3 points.

Bollinger Bands on the daily chart show moderate growth: the price range is widening, clearing the way for the "bulls" to new local highs. MACD is rising, preserving quite a strong buy signal (histogram is located above the signal line). Stochastic, which turned down at the beginning of the week, still maintains a fairly confident downtrend, signaling in favor of the downward dynamics in the nearest time intervals.

Long positions on AUD/USD can be opened after a confident breakdown of the level of 0.6750 upwards with the target of 0.6853. Stop-loss - 0.6700. Implementation period: 2-3 days.

A rebound from 0.6750 as a resistance and further break-down of 0.6700 might signal an opening of new short positions with the target at 0.6600. Stop-loss is at 0.6750.