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 Tuesday the 14th of December 2021
- AUD – NAB Business Confidence
- Overnight
- USD PPI m/m
- Early Tomorrow Morning
- RBNZ Gov Orr Speaks
The Aussie Dollar – Fundamentals
The AUD/USD pair fell at the beginning of the day, now trading at around 0.7130 after posting an intraday low of 0.7110 in the American session. The pair started the day with a bearish gap, filling it before resuming its decline, a sign that the bearish movement may continue during the next few sessions. The pair accelerated its decline mid-European session, as stock markets took a turn to the worse, reaching the mentioned low on the back of Wall Street’s broad weakness.
Market players moved away from high-yielding stocks, jumping into government bonds, which in turn, dragged yields sharply down. The greenback became unattractive with falling yields, limiting the pair’s decline.
The Aussie Dollar – Technical Analysis
Overnight the AUD/USD tested the 0.7172 resistance level for the fourth consecutive day before sharply falling and bouncing off support at 0.7110. We will be watching to see which way the market will break, with the RSI in oversold territory there is a technical bias to the downside.
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 (0.7306).
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 4668
- NASDAQ closed at 16113
- ASX 200 closed at 7379
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7133
- AUD/JPY – At the time of writing this report trades at 81.02
- AUD/CNH – At the time of writing this report trades at 4.5431
- DXY (US Dollar Index) – At the time of writing this report trades 96.365
- AUD/EUR – At the time of writing this report trades 0.6321
- Bonds
- US 10-year Bonds are currently at 1.414
- Aussie 10-year Bonds are currently at 1.555
- Commodities
- Iron Ore 62% – Trading at USD/T 108.51
- Gold – trading at USD/OZ 1786
- Brent Crude Oil – Trading at USD/Bbl 74.24