|

AUD/USD bulls cross 0.6900 on upbeat Australia inflation, Retail Sales data

  • AUD/USD remains mildly bid but fails to cheer strong Aussie data.
  • Australia’s Retail Sales, Monthly Consumer Price Index crossed market forecasts and priors in November.
  • China, US inflation numbers are eyed for clear directions.

AUD/USD pierces 0.6900 while printing a small tick towards the north on upbeat Australia data on early Wednesday. The Aussie pair buyers, however, appear cautious ahead of the key inflation numbers from China and the US, up for publishing tommorrow.

Australia’s seasonally adjusted Retail Sales grew 1.4% MoM versus 0.6% expected and -0.2% prior while the Monthly Consumer Price Index rose 7.4% compared to -5.7% market forecasts and -3.9% previous readings.

It’s worth noting that the US Dollar’s failure to keep the previous day’s corrective bounce also underpins the AUD/USD pair’s recovery amid sluggish markets.

That said, the US Dollar Index (DXY) remains pressured towards the 103.00 round figure, around 103.20 by the press time, as it fails to extend Tuesday’s bounce off the seven-month low. In doing so, the greenback traces the downbeat US Treasury yields while also portraying the market’s inaction ahead of the US Consumer Price Index (CPI) data.

US 10-year Treasury bond yields rose 10 basis points (bps) to 3.61%, following a corrective bounce to snap the two-day downtrend marked the previous day. However, the benchmark bond coupons retreat to 3.60% by the press time. The same join the upbeat Wall Street closing to help S&P 500 Futures print mild gains and weigh on the US Dollar’s safe-haven demand.

It should be noted, however, that the downbeat economic forecasts from the World Bank (WB) seem to challenge AUD/USD buyers due to the pair’s risk-barometer status, as well as close ties with China. On Tuesday, The WB stated that it expects the global economy to grow by 1.7% in 2023, down sharply from 3% in June's forecast, as reported by Reuters. The Washington-based institute also raised fears of global recession by citing the scale of recent slowdowns. Further, "China's 2022 growth slowed to 2.7% due to COVID lockdowns but will recover to 4.3% for 2023," stated World Bank, per Reuters.

Looking forward, China’s headline inflation numbers will be crucial for the AUD/USD pair traders ahead of the US Consumer Price Index (CPI), up for publishing on Thursday. Forecasts suggest that China's CPI is likely to rise to 1.8% YoY versus 1.6% prior while the Producer Price Index (PPI) could improve from -1.3% previous readings to -0.1%. Should the scheduled data match upbeat market forecasts, the AUD/USD may witness further upside, mainly due to its trade ties with China.

Technical analysis

AUD/USD bulls remain hopeful of reaching the 0.7000 psychological magnet unless witnessing a daily close below the 200-DMA, at 0.6835 by the press time.

Additional important levels

Overview
Today last price0.6893
Today Daily Change0.0000
Today Daily Change %0.00%
Today daily open0.6893
 
Trends
Daily SMA200.6765
Daily SMA500.6704
Daily SMA1000.6635
Daily SMA2000.6839
 
Levels
Previous Daily High0.6928
Previous Daily Low0.686
Previous Weekly High0.6887
Previous Weekly Low0.6688
Previous Monthly High0.6893
Previous Monthly Low0.6629
Daily Fibonacci 38.2%0.6886
Daily Fibonacci 61.8%0.6902
Daily Pivot Point S10.6859
Daily Pivot Point S20.6826
Daily Pivot Point S30.6791
Daily Pivot Point R10.6928
Daily Pivot Point R20.6962
Daily Pivot Point R30.6996

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Editor's Picks

AUD/USD keeps the red near 0.6950 after weak Aussie jobs data

AUD/USD holds losses near 0.6950 on disappointing Australian jobs data, extending the previous day's retracement slide from the monthly high and hitting a fresh weekly low during Thursday’s Asian session. Meanwhile, declining US bond yields drag the US Dollar away from the April 2025 high, touched after Wednesday's hot US CPI, helping limit losses for the currency pair.

USD/JPY slides back below 158.00 as USD reverses post-CPI gains

USD/JPY extends the previous day's pullback from a three-week high, attracting follow-through selling and sliding below 158.00 during Thursday's Asian session. Traders remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. The US Dollar, meanwhile, reverses Wednesday's hot CPI-led gains to April 2025 highs as US bond yields retreat on China bond-buying talk, further pressuring the pair.

Gold rebounds to $4,150 as China bond-buying reports smash US yields

Gold attracts strong buying and retests $4,150 during the Asian session on Thursday, snapping a three-day losing streak to a one-week low. Retreating US bond yields drag the US Dollar away from the April 2025 high, touched in reaction to Wednesday’s hot US CPI report, and boost the non-yielding bullion. Reports that China is quietly buying US Treasuries through Canada are smashing US Treasury bond yields and the USD.

Bitcoin falls on hot CPI: Why $80,000 support matters

Bitcoin's (BTC) most critical level to watch is near $80,000 as September's hot inflation reading pressures the crypto market, according to Glassnode. The top crypto declined within minutes of the September Consumer Price Index (CPI) release, which showed a 3.7% annual increase in headline inflation, above forecasts of 3.6%. Core inflation, which excludes food and energy prices, came in at 2.6%.

China seems routing US Treasury holdings through Canada

According to a Bloomberg report, China seems to be moving United States securities to non-US custodian banks in other countries, masking its role in financing US deficits.

Has Bitcoin really escaped the macro forces it was built to fight?
Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?