Powell’s Signal Reshapes Markets: What’s Next for AUD, Gold and Bitcoin?

Global markets enter the final week of August riding Powell’s dovish message from Jackson Hole. In his closing address at the high-profile symposium, the Fed Chair warned of rising labour market risks over stubborn inflation — a signal that policy shifts may be close, with September’s FOMC firmly in focus. Traders moved swiftly: the dollar index dropped to a four-week low before steadying near 98, while rate-cut odds surged to 87%.

Against this backdrop, three markets now ride at a pivotal crossroads: the Aussie dollar, Gold, and Bitcoin.

AUD/USD

The Australian dollar is hovering around 0.6477, holding steady after last week’s dollar-driven swings. The greenback’s weakness, sparked by Powell’s dovish tone and political turmoil around the Fed, gave the Aussie room to stabilise, though momentum remains fragile.

Technically, AUD/USD continues to trade within a 0.6410–0.6610 range, repeatedly capped by resistance around 0.6605. The pair is now retesting the descending trendline near 0.6514, with the 50-day moving average at 0.6550 forming the next key barrier. A break above these levels would open the path to 0.6605, shifting momentum more bullish. On the downside, immediate support sits at 0.6410, followed by 0.6390, which also aligns with the 200-day moving average.

The KDJ indicator is curling upward from oversold territory, hinting at short-term upside potential, but the broader picture stays constrained until a decisive close above 0.6605 confirms a breakout.

Gold

Gold remains supported by expectations of global monetary easing and ongoing geopolitical risks, which underpin safe-haven demand. Flows into the metal have been steady as US yields and the dollar soften ahead of key data and central bank decisions. For now, gold’s setup remains range-bound but constructive, with a bullish bias emerging if $3,405 is broken decisively.

Technically, gold is holding near $3,380 per ounce after repeated tests of the $3,270 support zone. Prices have consolidated between $3,270 and $3,435, consistently bouncing off the lower band. The chart highlights an attempt to break through a descending trendline, though momentum is still capped at $3,405. A close above this level would set up a retest of the $3,435–3,450 ceiling, while failure risks a slide back to $3,270 and possibly $3,180. The KD indicator is recovering from oversold territory and trending higher, a constructive signal if buying momentum persists.

Bitcoin

The broader crypto market has mirrored risk assets, facing volatility from shifting monetary policy expectations and renewed regulatory debate in the US. Bitcoin, as the sector’s leader, has come under pressure, breaking below its multi-month ascending trendline and failing to hold above its previous peak at 111,904.

Technically, the breakdown has shifted focus to the $107,000–$111,250 support zone. A sustained move below this area could trigger a test of $107,000, and further down, the 200-day moving average near $101,000 — a critical line for bulls. On the upside, any rebound would first need to reclaim $116,500 to restore momentum, with $120,000 back in play only if that level is cleared. The KDJ indicator is deeply oversold, hinting that near-term downside may be stretched and a relief bounce is possible. Still, sentiment remains fragile — unless Bitcoin swiftly reclaims the $116k handle, risks point to consolidation within the $100k–110k range.

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