Risk-on pushed stocks and riskier currencies upward.
Technical analysis
The aussie is heading towards a strong resistance area. The AUD/USD will meet the first resistance at the high of June 24 at 0.695. If it breaks it, it may surge further to the key resistance at 0.697 that it has touched several times already. Don’t worry, if price falls after breaking through one of those levels. It’s natural to see fresh selling at first. Most analysts have bullish prospects on the Australian dollar. It’s likely to move even higher towards the more significant resistance at 0.7015. Anyway, support levels are at recent lows of July 1 at 0.6910 and 0.6890 and then at 0.6830, that it has tested several times, but bounced back.
Fundamental analysis
There are many tailwinds for the Australian dollar. Firstly, it got a fresh upward stimulus from the encouraging data that came this morning. The Australian retail sales rose by 16.9%, while the forecast was 16.3%. It is the earliest report that reveal consumer spending, that’s why it’s so important for traders. Secondly, yesterday the US NFP report bet all estimates and improved the market sentiment. As a result, the risk-sensitive aussie gained on the positive data. Finally, successful Covid-19 vaccine experiments from Pfizer and BioNtech strengthened the risk-on tone on the market, as well.
Upcoming event:
Follow the rate statement of the Reserve Bank of Australia on July 7 at 7:30 MT time. If the RBA gives optimistic prospects for economic recovery, AUD will gain, otherwise – it may fall.
This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments. The views and ideas shared in this post are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the post may be subject to change without prior notice.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.