- AUD/USD trims weekly gains on Friday on the back of a stronger US dollar.
- Next week data includes the Australian employment report.
A rally of the US dollar late on Friday pushed AUD/USD further lower. The pair dropped to 0.7220, hitting a fresh 2-day low. From Thursday’s top at 0.7301 (1-month high), lost almost 80 pips and is about to end the week facing bearish pressure.
The greenback gained momentum following US data (PPI and consumer confidence, both came above expectations) and rose further extending the rally that started late on Wednesday. The US Dollar hit 97.00 and was about to post the highest weekly close since June 2017.
The AUD/SUD pair is still in positive territory for the week but far from the highs. Price was unable to hold on top of the 20-week moving average at 0.7260 and previously the rally found strong resistance at 0.7300.
Some consolidation ahead between 0.7300 and 0.7200 seems likely for the next session. The Aussie needs to break and hold on top of 0.7300 to open the doors to more gains while below 0.7175, more losses are likely.
Next week data: AU jobs, Powell and US CPI
The economic calendar shows key events for next week in the US CPI data, retail sales and Powell’s testimony. The CPI is expected to show a gain of 0.2% on October and retail sales of 0.5%. Fed Chair will head for Congress the week after the Fed left the key interest rate unchanged and signaled a rate hike in December.
In Australia, the key numbers will come from the employment report on Thursday. Analysts at TDS point out that the wage price index evolutions is key for the Reserve Bank of Australia. “With the 3.5% jump in the minimum wage likely muted by the simultaneous trimming of penalty rates, difficult to see wage growth exceed 2.35%/y (mkt 2.3%/y, 1/4 look for 2.4%/y). An upside surprise, however, would erase recent market disappointment in retail sales and CPI, and lift pricing for a rate hike next year (currently ~70% priced for Nov '19)”.
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.