AUD/USD recovers some lost ground above 0.6300 ahead of Australian PPI data

AUD/USD recovers its recent losses on the softer USD.
The preliminary US Q3 GDP rose 4.9%, Continuing claims rose to the highest reading since May.
The markets anticipate the potential additional rate hike from the RBA at the November meeting.
Investors will focus on Australian PPI, and US monthly core Personal Consumption Expenditures Price Index (PCE) data.

Lallalit Srijandorn FXStreet

The AUD/USD pair holds above 0.6300 after bouncing off the year-to-date (YTD) lows at 0.6270 during the early Asian session on Friday. A modest recovery of the pair is bolstered by the correction of the US Dollar (USD) and the possibility of more rate hikes from the Reserve Bank of Australia (RBA) at its November meeting. The pair currently trades around 0.6325, gaining 0.06% on the day.

The preliminary US Gross Domestic Product (GDP) Annualized for the third quarter (Q3) expanded by 4.9% from the previous reading of 2.1% expansion, better than the market expectation of 4.2%. Additionally, the weekly Initial Jobless Claims for the week ending October 21 totaled 210,000 from 200,000 (revised from 198,000) in the previous reading, worse than the market consensus of 208,000. Continuing claims rose to the highest reading since May, by climbing by 63,000.

In response to the data, The Greenback initially gains traction and then reversed its course due to a decline in US Treasury yields. US Treasury Secretary Janet Yellen said on Thursday that the US economy is operating well, although Americans are worried about the economy. Yellen also noted that the recent rise in yields is unrelated to deficits and does not portend an oncoming recession. On the contrary, it reflects the US economy's strength.

On the Aussie front, Reserve Bank of Australia (RBA) Governor Michele Bullock commented on Thursday that CPI was a little higher than expected, but it was about where we thought it would come. Bullock added that the central bank aims to slow the economy without tipping it into recession. The markets anticipate the potential additional rate hike from the RBA on November 7, as the latest inflation figures in Australia were in line with policymakers' expectations.

Market participants will keep an eye on the Australian Producer Price Index (PPI) later on Friday’s early Asian session. Also, the US monthly core Personal Consumption Expenditures Price Index (PCE) will be released. These figures could give a clear direction to the AUD/USD pair.

AUD/USD

Overview
Today last price	0.6326
Today Daily Change	0.0017
Today Daily Change %	0.27
Today daily open	0.6309

Trends
Daily SMA20	0.6358
Daily SMA50	0.6399
Daily SMA100	0.6543
Daily SMA200	0.6644

Levels
Previous Daily High	0.64
Previous Daily Low	0.6305
Previous Weekly High	0.6393
Previous Weekly Low	0.6296
Previous Monthly High	0.6522
Previous Monthly Low	0.6332
Daily Fibonacci 38.2%	0.6341
Daily Fibonacci 61.8%	0.6364
Daily Pivot Point S1	0.6276
Daily Pivot Point S2	0.6244
Daily Pivot Point S3	0.6182
Daily Pivot Point R1	0.6371
Daily Pivot Point R2	0.6432
Daily Pivot Point R3	0.6465

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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