- AUD/USD remains sidelined after closely missing the bearish weekly close.
- US Dollar gained on upbeat data, pre-Fed anxiety and geopolitical fears.
- Aussie Dollar cheers optimism surrounding China, RBA’s positive tone.
- No major data from Australia on cards for publishing today but rest of the week will be too volatile.
AUD/USD began the key week on a dicey floor after closely missing the negative weekly print. In doing so, the Aussie pair portrays the typical pre-data anxiety ahead of the key monetary policy meeting of the US Federal Reserve, a speech from the Reserve Bank of Australia (RBA) Governor Philip Lowe and the US inflation numbers, not to forget Aussie jobs report for November. Given the slew of important catalysts lined up for publication, the Aussie pair struggles for clear directions and remains volatile.
That said, the US Dollar Index (DXY) printed the first weekly close on the positive side in the last three as the latest US economy came in better than expected.
The US Producer Price Index (PPI) matched the market forecasts of 7.4% YoY for November versus 8.1% prior. Further, the Core PPI rose to 6.2% YoY versus 6.0% expected and 6.7% previous readings. Additionally, preliminary readings of the University of Michigan’s (UoM) Consumer Sentiment Index rose to 59.1 for December versus 53.3 market forecasts and 56.8 final readings for November. Moreover, the 1-year inflation expectations dropped to 4.6%, the lowest since September 2021 while compared to 4.9% expected whereas 5-10 year expectations were stable at 3.0%.
Elsewhere, China continues to praise a reduction in the daily Covid cases and shows readiness for more stimulus. During the weekend, Nikkei Asia reported that China banks throw a $460 billion credit lifeline to the real estate sector.
At home, the RBA’s push for slower rate hikes failed to gain major acceptance as the policymakers showed readiness for stronger moves if needed. The same joins mixed data to restrict the AUD/USD moves.
Amid these plays, Wall Street closed in the red and yields improved, which in turn restricted the AUD/USD pair’s safe-haven demand and weighed on the prices ahead of the key week.
Moving on, a light calendar on Monday and a cautious mood ahead of the key data/events could restrict intraday moves of the AUD/USD pair. However, hopes of a hawkish hike by the Fed versus the RBA’s latest defense to the easy rate hike teases the pair sellers.
A one-month-old bullish channel restricts short-term AUD/USD moves between 0.6870 and 0.6685 as the Aussie traders struggle to cross the 200-day EMA hurdle surrounding 0.6835.
Additional important levels
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
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.