- Federal Reserve policymakers are committed to tackling inflation in the United States, bolstering the US Dollar.
- Australia’s Consumer Confidence improved, Aussie Dollar traders eye RBA minutes.
- AUDUSD Price Analysis: The inverted head-and-shoulders pattern remains in play, targets 0.6870.
The Australian Dollar (AUD) is almost flat as the North American session winds down after two Fed officials emphasized the Federal Reserve’s (Fed) commitment to tackle inflation at around 7.7% YoY, bolstering the US Dollar (USD). However, both policymakers acknowledged that it would be “appropriate” to slow the pace of interest-rate increases, spurring a risk-on impulse. Nevertheless, sentiment shifted sour. At the time of writing, the AUDUSD is trading at 0.6700.
Fed officials compromised to bring inflation to Fed’s target
Wall Street finished Monday’s session in the red. Fed Vice-Chair Lael Brainard said that the Federal Reserve might slow the pace of interest-rate increases and said she favors a 50 bps hike in December. Brainard added that the Central Bank would not pause or ease monetary conditions, adding that “we have additional work to do.” Earlier, Fed Governor Christopher Waller echoed Brainard’s comments and commented that the Fed could moderate the size of interest-rate increases to 50 bps at their December meeting or the one after that. Although it was a hawkish statement, and the USD was bolstered, the AUD clung to its last week’s gains, as shown by the AUDUSD hitting a daily low at 0.6663 before challenging the 0.6700 figure.
Data-wise, the United States (US) calendar featured the New York Fed inflation expectations, with one and three-year horizons expanding by 5.9% and 3.1%, from 5.4% and 2.9%, respectively. The jump in inflation expectations is attributed to high gasoline prices.
Australia’s Consumer Confidence improved, but the AUDUSD remains subdued
Aside from this, Australia’s economic docket features the ANZ-Roy Morgan Consumer Confidence, which rose 2.7% after declining 10.4% over the previous six weeks. Delving into the report, Weekly Inflation expectations dropped 0.3% though they remained elevated at around 6.5%. Traders did not react to the data, as the AUDUSD was in choppy trading as the Asian session began.
RBA’s monetary policy minutes eyed
The Reserve Bank of Australia’s (RBA) November monetary policy meeting minutes would be revealed after the Central Bank lifted the Overnight Cash Rate (OCR) 25 bps to 2.85%. Some analysts expect that the RBA will return to a faster pace of tightening after September’s inflation report increased by 7.3%. However, the RBA upgraded its inflation forecast, and now they see inflation at around 8%.
AUDUSD Price Analysis: Technical outlook
The AUDUSD remains neutral-to-upward biased. It should be noted that an inverted head-and-shoulders remains in play, though the Aussie Dollar is struggling to reclaim the 100-day Exponential Moving Average (EMA) at 0.6697. Once the latter is cleared, the uptrend towards the inverted head-and-shoulders pattern target at 0.6870 is on the cards, but critical resistance levels need to be surpassed, like the 0.6800 figure.
|Today last price||0.6701|
|Today Daily Change||-0.0008|
|Today Daily Change %||-0.12|
|Today daily open||0.6709|
|Previous Daily High||0.6717|
|Previous Daily Low||0.6578|
|Previous Weekly High||0.6717|
|Previous Weekly Low||0.6387|
|Previous Monthly High||0.6548|
|Previous Monthly Low||0.617|
|Daily Fibonacci 38.2%||0.6664|
|Daily Fibonacci 61.8%||0.6631|
|Daily Pivot Point S1||0.6619|
|Daily Pivot Point S2||0.6529|
|Daily Pivot Point S3||0.6479|
|Daily Pivot Point R1||0.6758|
|Daily Pivot Point R2||0.6807|
|Daily Pivot Point R3||0.6897|
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD: Euro recovers ground but not re-attracting bulls yet Premium
The EUR/USD rose on Monday toward the 1.0800 area, recovering some of Friday’s slide, supported by an improvement in market sentiment, amid easing concerns on the banking sector.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium
Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.
MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high
Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.