The Australian dollar has reversed directions in the Thursday session. AUD/USD is trading at 0.7487, down 0.39% on the day. In Asia, the pair rose to 0.7564, its highest level since July 6th. It has been a strong week for the Australian currency, as the US dollar remains under pressure. Even with today’s decline, AUD/USD is still up 0.88% this week.

Australian confidence takes a tumble in Q3

The NAB Quarterly Business Confidence index fell sharply in the third quarter, due to the lockdowns which were in effect for most of the quarter. The index dropped from 19 in Q2 to -1 in Q3, as confidence was down across all industries and states.  The NAB report noted that although businesses are pessimistic about the short term, there is stronger optimism looking ahead to 2o22.  The survey was taken before health restrictions were eased in Melbourne and Sydney, the country’s largest cities, which should translate into a stronger release for the fourth quarter.

The RBA minutes reiterated that the central bank does plan to raise interest rates before 2024. However, the markets are much more hawkish and have priced in a hike for mid-2022. The market optimism is based on expectations that the economy will improve as lockdowns have been eased and vaccination rates are rising higher. As well, central banks are going through a tightening cycle – the RBNZ raised rates earlier in October and the BoE is widely expected to hike next month, and the RBA may not want to be left behind.

Investors are watching closely to see if the RBA steps in and changes its guidance on the rate outlook. If it does, the Australian dollar could be the big winner. The currency has gained an impressive 3.64% in October, and barring a major collapse, is headed for its best month in 2021.

AUD/USD Technical 

  • The pair tested resistance at 0.7532 in the Asian session. Above, there is resistance at 0.7624.

  • 0.7476 is under pressure in support and could break later in the day. This is followed by 0.7328.

AUDUSD

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD clings to recovery gains above 1.1350 after EU inflation data

EUR/USD gained traction and climbed to its highest level in more than 10 days above 1.1360 amid the broad-based selling pressure surrounding the greenback. The data from the euro area showed that the annual CPI jumped to 4.9% in November from 4.1% in October, helping the shared currency preserve its strength.

EUR/USD News

GBP/USD advances to mid-1.3300s on renewed dollar weakness

GBP/USD gathered bullish momentum during the European trading hours and climbed to 1.3350 area as the greenback remains under selling pressure amid slumping US Treasury bond yields. Investors await FOMC Chairman Powell's testimony.

GBP/USD News

Gold eyes $1,800 and $1,806 on road to recovery

The precious metal has staged a decent comeback, as bulls look to recapture the $1,800 mark amid a revival of the Omicron covid variant fears. A flight to safety theme remains in vogue killing the demand for the yields.

Gold News

XRP price on edge of cliff as Ripple faces imminent collapse

XRP price followed the rest of the cryptocurrency market lower over the weekend. The US Thanksgiving holiday gave cryptocurrency traders and investors some early Black Friday deals, but downside risks remain.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Majors

Cryptocurrencies

Signatures