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.
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Key Data Being Released Today Wednesday the 15th of December 2021
- AUD – Westpac Consumer Sentiment
- CNY – Industrial production
- CNY – Unemployment Rate
- GBP – CPI y/y
- Overnight
- CAD – CPI
- USD – Retail Sales
- USD – FOMC Economic Projections
- USD – FOMC Federal Funds Rate and Statement
- USD – FOMC Press Conference
The Aussie Dollar – Fundamentals
The Australian dollar grinds lower against the greenback during the New York session. On Tuesday, the market sentiment was tepid, as investors await the Federal Reserve monetary policy decision. Additionally, the odds of the US central bank reducing its bond-purchasing program faster as estimated increased when the US Bureau of Labor Statistics (BLS) reported that prices paid for producers rose the most in eleven years.
The AUD/USD tumbled below the 0.7100 figure in the overnight session, as Monday’s Wall Street market mood influenced Asian markets. However, upbeat news that two doses of the Pfizer BioNTech vaccine would provide 70% protection against the COVID-19 Omicron strain improved the market mood during the European session, pushing the pair towards 0.7135.
There is a fair bit of market data coming out in the next 24 hours starting with Westpac Consumer Confidence for December. In the US docket, Retail Sales for November are expected at 0.8%, while excluding Autos, the consensus estimates are at 1%. Later on, the Federal Reserve monetary policy decision, with consensus expecting a reduction of $30 billion on its bond asset purchases, beginning in January 2022.
The Aussie Dollar – Technical Analysis
Overnight the AUD/USD continued to fall and is currently testing support at 0.7110. With the RSI still in oversold territory, we will be watching this level with keen interest and a technical bearish bias to the downside
Resistance on the Top Side – If the market rebounds we see resistance at 0.7172, with more resistance at 0.7300, which is very close to the 50 Day MA (0.7302)
Support on the Downside – we will 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 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 0.7101
- AUD/JPY – At the time of writing this report trades at 80.77
- AUD/CNH – At the time of writing this report trades at 4.5210
- DXY (US Dollar Index) – At the time of writing this report trades 96.556
- AUD/EUR – At the time of writing this report trades 0.6307
- Bonds
- US 10-year Bonds are currently at 1.441
- Aussie 10-year Bonds are currently at 1.569
- Commodities
- Iron Ore 62% – Trading at USD/T 107.04
- Gold – trading at USD/OZ 1770
- Brent Crude Oil – Trading at USD/Bbl 73.20