AUDUSD SUPPORTED AROUND 0.6640S BELOW THE 100-DMA, TO RECORD MINIMAL WEEKLY LOSSES

The Australian dollar would end the week with a loss of 0.50 percent. , current home sales in the US fell sharply, although they were ignored as the US dollar remained strong. AUDUSD Price Analysis: Head and Shoulders up continues to play out, even with a big correction. Australian dollar (AUD) is set to end the week on the downside, falling against the US dollar (USD) as sentiment turns sour without a catalyst, unless Fed policymakers continue their frenzied campaign. US Treasury yields also developed moderately, which supported the USD. At the time of writing, the AUDUSD is trading at 0.6675. US DOGE DATA PAIN FROM HIGH INTEREST RATES The US economic calendar showed that current October home sales fell 5.9%, below the .17% increase expected by economists. It should be said that home sales have declined since February 2022 as the Federal Reserve continued its tightening cycle to combat elevated inflation. Meanwhile, many Fed officials reiterated that inflation is high, that the October inflation numbers were encouraging, that it was only one positive reading in 11 months, but added that they will continue to raise interest rates. Despite efforts by Fed officials to resist the Fed’s pivot, it required that St. Louis Fed President James Bullard would say that rates are „not restrictive enough” and added that rates should rise by 5% to 5.25%. area U.S. stocks fell on those remarks, which were later echoed by Minnesota Federal Reserve President Neil Kashkari, who commented that one month’s worth of data would not reassure the Fed, as it must hold onto it until they are sure that inflation stopped During the Asian session, the Australian dollar took a back seat while the US dollar strengthened. A lack of economic data in the Australian calendar kept traders focused on the latest Australian jobs report, which surprised market analysts. However, expectations of continued tightening from the Reserve Bank of Australia (RBA) remained unchanged. As of today, money market futures are pricing in an 88% chance of a 25-basis-point gain at the December 5 meeting. AUDUSD Price Analysis: Technical Perspective After reaching a weekly high above 0.6800 AUDUSD erased those gains and extended its losses below the 100-day exponential moving average (EMA) at 0.6699. While the inverted head and shoulders chart pattern formed on the AUDUSD daily chart is still playing out, a sharp reversal could be seen as AUD buyers booked profits and took a breather before attacking the psychological level of 0.6800. Accordingly, AUDUSD may pull back to the 50-61.8% Fibonacci retracement level between 0.65 5-0.659 before moving to 0.6800 and targeting the head and shoulders around 0.6870.

Steve Walker

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