- AUDUSD struggles for clear direction at the highest levels in two months.
- Mixed concerns over the rockets fired toward Poland, cautious mood ahead of the key data/events challenge momentum traders.
- US Retail Sales, Australia employment data will be closely observed for immediate directions.
AUDUSD grinds higher around the intraday top but stays mostly unchanged on a day as the quote seesaws around 0.6760 heading into Wednesday’s European session.
It’s worth noting that strong prints of Australia’s Wage Price Index failed to impress the Australian Dollar (AUD), as well as the International Monetary Fund’s (IMF) advice to the Reserve Bank of Australia (RBA) to increase the benchmark rates faster. The reason could be linked to the mixed concerns surrounding Russia.
Late on Tuesday, the news that two Russian-made rockets were fired at Poland and killed two people triggered the risk-off mood. The same triggered emergency meetings of the North Atlantic Treaty Organization (NATO) and the Group of Seven (G7), which in turn favored the US Dollar (USD) due to its safe-haven appeal.
However, the latest news shared by the Associated Press (AP) quoted an anonymous US official’s findings while mentioning that the missile may have been fired by Ukraine. As a result, the risk aversion ebbed and the greenback reversed the early-day gains.
Elsewhere, the US Treasury yields snap a two-day downtrend near 3.82% whereas the S&P 500 Futures print mild gains around the 4,0000 round figure, the highest levels in a month, which in turn should have favored the AUDUSD bulls.
Hence, the market’s inaction and mixed updates seem to challenge the AUDUSD traders ahead of the key Australian employment data and the US Retail Sales for October. That said, fears of strong US data and the odds of the Reserve Bank of Australia’s (RBA) softer rate hikes are on the table, which in turn keeps the AUDUSD bears hopeful.
Also read: US October Retail Sales Preview: US Dollar unlikely to find reprieve
Technical analysis
The 100-DMA challenges AUDUSD bears around 0.6700 whereas the September 2022 high near 0.6920 is the key hurdle to the north.
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.