- AUD/USD has started to correct but is slowing in Asia.
- AUD/USD bulls stepped in at US session lows, a steeper correction is eyed toward a 50% mean reversion.
AUD/USD is flat at around 0.6700 in Tokyo, correcting from the US session lows. In the US data, prices are rising, but more slowly than expected. The PPI data for April increased 0.2% MoM with annual growth now at 2.3% YoY. Petrol prices in the US lifted more slowly than expected, while food prices actually fell. Core prices are now up 3.4% YoY. ´´The data indicates ongoing price pressures in core services,´´ analysts at ANZ Bank explained.
Elsewhere, the number of Americans filing new claims for unemployment benefits leaped to a 1-1/2-year high last week, and producer prices rebounded modestly in April. US Weekly Initial Unemployment Claims Rose +22,000 to 264,000, showing a weaker labor market than expectations of 245,000.
Domestically, the analysts at ANZ Bank explained that the Western Australian budget estimates a AUD4.2bn surplus in 2022-23, the same as the federal budget.
´´This is AUD 1.8bn larger than was expected in the Mid-Year Financial Projections Statement, published in December 2022. The state treasury forecasts a smaller net operating surplus of AUD3.3bn in 2023-24, AUD1bn lower than in the mid-year update,´´ the analysts explained, adding, ´´the smaller surplus reflects the increase in expenses to provide cost-of-living support and additional investment in front-line service delivery in the health, education and disability services sectors.´´
AUD/USD technical analysis
A drive into the hourly resistance could equate to a downside continuation towards 0.6670 initially.
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 fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.