Good Morning,
Welcome to our daily market update where we help keep you informed on the latest happenings in the world of FX and show you what this means for the Mighty Aussie Dollar.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com
Key Data Being Released Today Monday the 13th of December 2021
- No real impactful data during the day
The Aussie Dollar – Fundamentals
Despite the record close on Wall Street indices on Friday, The AUD failed to extend its recovery momentum into the weekly opening,
The Aussie witnessed a 10-pips bearish opening gap, warranting caution for the bulls after booking the first weekly gain in six weeks.
On Friday, the AUD consolidated near its ten-day high, holding the higher ground amid a broad decline in the US dollar after the hotter inflation data failed to temper the market’s optimism over the new Omicron covid variant.
The US Consumer Price Index (CPI) rose by 6.8% YoY in November vs. 6.8% expected and 6.2% previous. Upbeat inflation readings were already priced-in alongside the Fed’s faster tapering bets for this week.
On the AUD side of the story, markets remain hopeful of the Reserve Bank of Australia (RBA) delivering a hawkish surprise in 2022, as Governor Phillip continued to remain optimistic on the country’s ability to bounce back from the latest hit due to the new variant.
The Aussie Dollar – Technical Analysis
On Friday Night the Aussie Dollar tested and failed to break the 0.7172 level of resistance for the third consecutive day. We will be watching the price action around this level very closely so see if this latest rally will continue or if its just consolidating before having another go at breaking 0.7000.
Resistance on the Top Side – the market tested and failed to break resistance at 0.7172. If 0.7172 is broken we see more resistance at 0.7300, which is very close to the 50 Day MA (0.7310)
Support on the Downside – If the market continues to fall, we see support at 0.7110 with more support at the psychological level of 0.7000. If the market breaks 0.7000 continues to fall there is the support at 0.6921 and then at 0.6800.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
- Stocks
- S&P 500 closed at 4712
- NASDAQ closed at 16339
- ASX 200 closed at 7353
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7163
- AUD/JPY – At the time of writing this report trades at 81.29
- AUD/CNH – At the time of writing this report trades at 4.5637
- DXY (US Dollar Index) – At the time of writing this report trades 96.085
- AUD/EUR – At the time of writing this report trades 0.6334
- Bonds
- US 10-year Bonds are currently at 1.487
- Aussie 10-year Bonds are currently at 1.629
- Commodities
- Iron Ore 62% – Trading at USD/T 105.00
- Gold – trading at USD/OZ 1782
- Brent Crude Oil – Trading at USD/Bbl 75.50