|

AUD/USD buyers stepped around weekly lows, dragging the pair towards 0.6970s on weak USD

  • The Australian Dollar got bolstered by China’s upbeat GDP and improvement in Australia’s consumer sentiment.
  • New York Fed Empire State Manufacturing Index plunged as business conditions deteriorated, augmenting speculations for a Fed pivot.
  • AUD/USD traders are eyeing Fed speaking, US PPI, Retail Sales, and Australia’s employment data.

The Australian Dollar (AUD) is trimming some of its Monday’s losses and rising due to an offered US Dollar (USD) across the board, despite a dampened market mood surrounding Wall Street. US corporate earnings would likely continue to drive the market sentiment amidst the lack of tier 1 data. At the time of writing, the AUD/USD is trading at 0.6974.

AUD/USD climbs but fails to crack 0.7000

Wall Street continues to lose traction as sentiment turns sour. US data released ahead of the US cash market equities open showed that Manufacturing activity in New York plunged to its lowest in January, as reported by the New York Federal Reserve (Fed). Delving into the report, business activity contracted sharply, with the index falling 22 points to -32.9. The report showed that new orders and shipments declined substantially, while delivery times were unchanged and inventories aimed higher.

The softer-than-expected data spurred a jump in the AUD/USD pair, reaching a new daily high of 0.6993, before retracing some of its gains. Meanwhile, the US Dollar Index, which tracks the buck’s value against a basket of six currencies, retraces 0.11%, down at 102.448, undermined by falling US Treasury bond yields.

On the Australian side, upbeat data from China, mainly the Gross Domestic Product (GDP) beating expectations of 1.6%, at 2.9% for Q4, bolstered the Aussie Dollar (AUD). Regarding the annual based data, China’s GDP came at 3%, well below the Communist Party’s 5% projection, and trailed 2021 by 8.1%.

Even though China’s data for the entire year disappointed, its reopening is being cheered by market investors, as the Hang Seng has risen almost 14% since the beginning of 2023. Further, the release of Australian consumer sentiment improved for the second consecutive month at 5.0%, vs. 3.0% in December.

Ahead of the week, the US economic docket will feature the New York Fed President John Williams, crossing newswires Tuesday. On Wednesday, the calendar will feature Retail Sales, prices paid by producers (PPI), and further Fed speaking.

AUD/USD Key Technical Levels

AUD/USD

Overview
Today last price0.6979
Today Daily Change0.0029
Today Daily Change %0.42
Today daily open0.695
 
Trends
Daily SMA200.6807
Daily SMA500.6749
Daily SMA1000.6636
Daily SMA2000.6829
 
Levels
Previous Daily High0.7019
Previous Daily Low0.6941
Previous Weekly High0.6994
Previous Weekly Low0.686
Previous Monthly High0.6893
Previous Monthly Low0.6629
Daily Fibonacci 38.2%0.6971
Daily Fibonacci 61.8%0.6989
Daily Pivot Point S10.6921
Daily Pivot Point S20.6892
Daily Pivot Point S30.6843
Daily Pivot Point R10.6999
Daily Pivot Point R20.7048
Daily Pivot Point R30.7077

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD challenges 1.1650; US Dollar remains inconclusive

EUR/USD now manages to regain some composure, trimming earlier losses and reclaiming the mid-1.1600s on Thursday. The pair’s pullback comes on the back of marginal gains in the US Dollar, as market participants now shift their attention to Friday’s NFP revision and the speech by Chair Warsh at the Jackson Hole Symposium.

Gold struggles to reclaim $4,600

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Crypto Today: Bitcoin, Ethereum, XRP bulls regain strength amid steady capital inflows

Cryptocurrency prices are broadly edging higher on Thursday, led by Bitcoin’s uptick near $80,000. Altcoins mirror Bitcoin’s short-term bullish outlook, with Ethereum trading above $2,500 and Ripple hovering above its key $1.40 support.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.