AUD/USD prints a fresh weekly high around 0.7439 amid positive US economic data


  • AUD/USD extends its rally against the greenback for the seventh consecutive day.
  • An upbeat market sentiment weighs on the US dollar safe-haven status.
  • The PBoC said that Evergrande’s risks to the financial system are “controllable.”
  • US Retail Sales rose by 0.7%, better than the 0.2% contraction foreseen.

The Australian dollar advances during the New York session, up some 0.12%, trading at 0.7425 at the time of writing. The market sentiment is upbeat, depicted by European and American stocks rising, whereas commodity-linked currencies like the AUD, the CAD, and the NZD trim earlier losses against the greenback.

DXY stalls at the 94.00 threshold on better than expected US data

The US Dollar Index that measures the buck’s performance versus its peers slides 0.11%, is at 93.87, despite a rebound after three days of consecutive losses, in the US 10-year note yield, which rises four and a half basis points, sitting at 1.561%.

Meanwhile, COVID-19 measures in Australia begin to ease. According to authorities, quarantine required for vaccinated travelers that arrive in New South Wales would not be necessary since November 1. The decision comes as the New South Wales state is set to reach an 80% first-vaccination dose rate on Saturday.

Nearby, in China, the PBoC central bank finally spoke about the Evergrande debt crisis, saying that risks to the financial system derived from the developer’s struggles are “controllable” and unlikely to spread. Furthermore, the central bank has asked lenders to keep the credit to the real estate sector “stable and orderly,” according to Zou Lan, PBoC head of the financial market department.

Data-wise, the Australian economic docket is absent. Concerning the US, Retail Sales for September surprisingly rose by 0.7%, higher than the 0.2% contraction estimated by analysts. Excluding autos and gas, sales increased by 0.7% more than the 0.5% in August.

Investors reacted positively to the data, as US equity indexes are rising between 0.50% and 0.65%, while the US T-bond yields trim this week’s losses.

Additionally, the University of Michigan Consumer Sentiment Index came at 71.4, lower than the 72.8 expected by investors, the second-lowest reading since 2011, as consumers grew more worried about current conditions and the economic outlook.

AUD/USD Price Forecast: Technical outlook.

The AUD/USD daily chart depicts the pair is tilted to the upside, has the 100-day moving average (DMA) under the spot price, and the Relative Strenght Index (RSI) at 65, which is aiming higher, supports the upward trend. However, to accelerate the upward move, a daily close above the September 3 high at 0.7477 could open the way towards the 200-DMA at 0.75670

AUD/USD KEY LEVELS TO WATCH

 

Overview
Today last price 0.7425
Today Daily Change 0.0009
Today Daily Change % 0.12
Today daily open 0.7416
 
Trends
Daily SMA20 0.7285
Daily SMA50 0.7306
Daily SMA100 0.7416
Daily SMA200 0.7572
 
Levels
Previous Daily High 0.7428
Previous Daily Low 0.7372
Previous Weekly High 0.7339
Previous Weekly Low 0.7226
Previous Monthly High 0.7478
Previous Monthly Low 0.717
Daily Fibonacci 38.2% 0.7406
Daily Fibonacci 61.8% 0.7393
Daily Pivot Point S1 0.7382
Daily Pivot Point S2 0.7349
Daily Pivot Point S3 0.7326
Daily Pivot Point R1 0.7439
Daily Pivot Point R2 0.7462
Daily Pivot Point R3 0.7495

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1300 after German inflation data

EUR/USD continues to trade in the negative territory below 1.1300 as the American session gets underway. The data from Germany showed on Friday that the Harmonized Index of Consumer Prices, the ECB's preferred gauge of inflation, climbed to 6% on a yearly basis in November, compared to the market expectation of 5.4%.

EUR/USD News

GBP/USD extends slump below the 1.3300 mark

GBP/USD trades near its 2021 low in the 1.3290 region, as demand for the greenback picked up pace during US trading hours. Market participants are digesting the latest covid-related news, somehow less concerned about its effects on economic developments. 

GBP/USD News

Gold: En route to challenge the November monthly low

Spot gold gapped lower at the weekly opening. Concerns related to the new coronavirus variant named Omicron hit hard the markets on Friday, although thinned conditions may have exacerbated the reaction to the news, as the US celebrated Thanksgiving on Thursday.

Gold News

Ethereum breaks out of bullish pennant, targets new all-time high at $5,000

Ethereum price lost 14% of its market value in turmoil on Friday. ETH is on the path to recovery with a bullish break out of the pennant. Expect a rally to emerge as tailwinds attribute to new all-time highs.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures