AUD/USD Current Price: 0.6752
- Australian Q4 inflation seen unchanged yearly basis at 1.7%.
- Recovering equities prevented the Aussie from falling further.
- AUD/USD poised to retest the multi-year low of 0.6770.
Commodity-linked currencies continued to ease, with AUD/USD falling to 0.6736, to finish the day around 0.6750. The Aussie was undermined at the beginning of the day by persistent weakness among local equities, and the NAB’s Business Confidence Index for December, which resulted in -2 against the 1 expected. Business Conditions met the market’s expectations by printing 3. The pair stabilized during the American session, trapped between the dollar’s strength and the solid performance of Wall Street.
Australia will release Q4 inflation estimates early Wednesday. Quarterly inflation is expected to have risen by 0.6%, slightly better than Q3 0.5%, while yearly basis, the CPI is seen unchanged at 1.7%. The RBA Trimmed Mean estimates are seen at 0.4% QoQ and 1.5% YoY, this last down from 1.6%. A worse-than-expected report could exacerbate speculation of a rate cut next week, and send the pair nose-diving toward 0.6670, the multi-year low achieved in 2019.
AUD/USD short-term technical outlook
The AUD/USD pair is stuck in a range but poised to extend its slide, according to technical readings in the 4-hour chart, giving no signs of downward exhaustion. The pair remains below a bearish 20 SMA which accelerated its decline in the mentioned time frame, while technical indicators stand pat near daily lows, lacking directional strength. The fact that it broke and met sellers on approaches to the 0.6770 level, add to the bearish case.
Support levels: 0.6730 0.6700 0.6670
Resistance levels: 0.6770 0.6805 0.6840
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
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.