AUDUSD Current Price: 0.6510
- Australian NAB’s Business Confidence unexpectedly contracted to 0 in October.
- Tensions mount amid US midterm elections, upcoming US inflation figures.
- AUDUSD retreats from a fresh monthly high holds above the 0.6500 threshold.
The Australian Dollar benefited from the greenback’s sell-off, with the AUDUSD pair surging to 0.6550, its highest since late September. US indexes rally as investors await the outcome of the US mid-term election and the release of US inflation figures later this week. Overall, market participants are betting on a Federal Reserve pivot in monetary policy, although they are keeping an eye on a potential Republican victory in the US.
Australian data released at the beginning of the day was generally discouraging. According to Westpac, consumer confidence plummeted in November, down 6.9% after declining 0.9% in the previous month. Additionally, NAB’s Business Confidence contracted to 0 in October from 5 in the previous month, although NAB’s Business Conditions resulted at 22, better than anticipated, although below the previous reading of 25.
The country will not publish macroeconomic figures on Wednesday, with the focus on Chinese inflation data. The October Consumer Price Index is foreseen at 2.4% YoY, while the Producer Price Index for the same period is expected to have contracted by 1.5%.
AUDUSD short-term technical outlook
The AUDUSD pair is up for a third consecutive day, and technical readings in the daily chart favor another leg north. The 20 SMA gains upward traction below the current level, while technical indicators accelerated their advances within positive levels, maintaining their bullish slopes. The longer moving averages, however, keep heading lower well above the current level, with a bearish 100 SMA providing dynamic resistance at around 0.6715.
The 4-hour chart shows that the 20 SMA has surged almost vertically above the longer ones, reflecting the intraday advance and skewing the risk to the upside. Technical indicators, in the meantime, retreated from overbought readings but remain well above their midlines, falling short of suggesting an upcoming slide.
Support levels: 0.6490 0.6455 0.6410
Resistance levels: 0.6550 0.6595 0.6630
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
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.