- AUD/USD starts the day on the backfoot despite softer US CPI.
- AUD/USD is at risk of another dip lower below 0.72 in the coming weeks.
AUD/USD is trading 0.63% lower having fallen from a 0.7373 high to a low of 0.7313 and sits near 0.7320 at the time of writing.
US equity markets softened following weaker than expected US inflation data although the easing in inflation may result in the Federal Reserve being more cautious about tapering support. The headline index rose 0.3% MoM vs expectation of a 0.4% gain and was the lowest monthly increase since January. This could give rise appetite a lift in the coming days ahead of next week's Fed meeting.
The S&P 500 was down 0.57% while the Dow Jones was down 0.84% by the close. In Europe, the Euro Stoxx 50 lifted 0.1% but the FTSE 100 fell 0.5%. The US 10-year was 6bps lower at 1.27%. The CRB index was up 0.15%.
As for other data, the Jobless Claims was watched and reduced by 58,600 in August. The 3-month average unemployment rate eased to 4.6% in July (from 4.7%). ''The furlough scheme concludes at the end of September, and as at the end of July 5.4% of employees were on this scheme. When the furlough scheme ends there is expected to be a wave of redundancies and increased underemployment,'' analysts at ANZ Bank explained.
Eyes on 0.72 area for AUD/USD
Meanwhile and locally, a dovish central bank, a Treasurer who is mindful of the need of Australian companies to diversify from trade with China, the fall in iron ore prices on the back of Chinese steel production curbs and heavy Covid related restrictions should keep investors wary, analysts at Rabobank warned.''In our view, AUD/USD is at risk of another dip lower below 0.72 in the coming weeks. This assumes the USD can stay on the front foot.''
|Today last price||0.7322|
|Today Daily Change||-0.0047|
|Today Daily Change %||-0.64|
|Today daily open||0.7369|
|Previous Daily High||0.7377|
|Previous Daily Low||0.7336|
|Previous Weekly High||0.7469|
|Previous Weekly Low||0.7345|
|Previous Monthly High||0.7427|
|Previous Monthly Low||0.7106|
|Daily Fibonacci 38.2%||0.7361|
|Daily Fibonacci 61.8%||0.7351|
|Daily Pivot Point S1||0.7344|
|Daily Pivot Point S2||0.7319|
|Daily Pivot Point S3||0.7302|
|Daily Pivot Point R1||0.7385|
|Daily Pivot Point R2||0.7402|
|Daily Pivot Point R3||0.7427|
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.