Slobodan Drvenica
Windsor Brokers
AUD/USD
Australian dollar fell to new multi-month low in early Wednesday, after coming under increased pressure from risk aversion and slowdown in Chinese factory activity.
China’s manufacturing PMI fell to 48.8 in May vs 49.2 contraction in April and well below 51.4 forecast, with deeper drop below 50 level which divides growth from contraction, adding to worries about the pace of country’s post-pandemic recovery.
Australia’s inflation report, which was released simultaneously, showed that inflation unexpectedly rose to 6.8% in April vs 6.4% consensus, though slightly below 7.0% in March and add pressure to the central bank, raising prospects for further rate hikes, though positive impact on Aussie dollar from the report was minor and short-lived.
On the other hand, fresh hawkish comments from Fed policymakers, favoring continuation of policy tightening cycle and keeping high interest rates for some time, inflate US dollar.
The pair is on track for the fourth consecutive monthly loss that adds to negative outlook, as technical studies are firmly bearish on daily and weekly chart.
However, the price action may face increased headwinds in coming sessions as daily studies are oversold, with upticks likely to be limited as overall picture is bearish.
Broken Fibo 61.8% (0.6547), falling 10 DMA (0.6562) and weekly cloud base (0.6581) mark significant barriers which should cap upticks and keep larger bears in play for extension towards targets at 0.6403/0.6272 (Fibo 76.4% of 0.6170/0.7157 / Nov 11 trough).
Res: 0.6547; 0.6562; 0.6581; 0.6637.
Sup: 0.6451; 0.6403; 0.6386; 0.6272.
Interested in AUD/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD loses traction, retreats below 1.0600
EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.
GBP/USD turns negative on the day below 1.2200
GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.
Gold reverses direction, drops below $1,860
Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high
Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Earnings beat triggers Nike to spike 9%
Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.