AUD/USD Current Price: 0.7288
- US inflation met the market’s expectations printing 7% YoY in December.
- The Australian macroeconomic calendar will have nothing to offer on Thursday.
- AUD/USD is trading at its highest since mid-November and is poised to extend its gains.
The AUD/USD pair trades a handful of pips below a daily high of 0.7288, benefiting from the broad greenback’s sell-off. Markets reacted to US inflation hitting its highest in four decades, as the Consumer Price Index was confirmed at 7% YoY, leaving the usual risk-off price pressure concerns aside. Wall Street rallied, although it lost momentum heading into the daily close. Meanwhile, US government bond yields kept retreating from fresh multi-month peaks, with that on the 10-year note bottoming at 1.71% and ending the day barely above such level.
Data wise, Australia did not release macroeconomic figures, but China published December inflation, which unexpectedly fell by 0.3% MoM, leaving an annual reading of 1.5%. The Producer Price Index resulted at 10.3% YoY, below the 11.1% expected. The Asian macroeconomic calendar has nothing relevant to offer on Thursday.
AUD/USD short-term technical outlook
The AUD/USD pair is trading a few pips above the 50% retracement of its 0.7555/0.6992 slide, a static support level at 0.7275. Technical readings in the daily chart indicate that the rally may continue, as technical indicators bounced from around their midlines, maintaining their bullish slopes. The pair is currently batting a flat 100 SMA, having been below it since mid-November.
In the near term and according to the 4-hour chart, the pair is overbought but still poised to extend its gains. The pair has accelerated above all of its moving averages, with the 20 SMA gaining strength upwards between the longer ones. Technical indicators are partially losing their strength but keep heading higher within overbought readings.
Support levels: 0.7275 0.7230 0.7195
Resistance levels: 0.7300 0.7340 0.7380
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
GBP/USD remains on the defensive below 1.2450 ahead of UK Retail Sales data
GBP/USD remains on the defensive near 1.2430 during the early Asian session on Friday. The downtick of the major pair is backed by the stronger US Dollar as the strong US economic data and hawkish remarks from the Fed officials have triggered the speculation that the US central bank will delay interest rate cuts to September.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.