Key Data Being Released Today.
Tuesday
- USD Empire State Manufacturing Index: exp. 20.4
- AUD Monetary Policy Meeting Minutes
- AUD RBA Gov Lowe Speaks
The Aussie Dollar – Fundamentals
The focus for the market today will be the RBA minutes being released this morning, with hopes it will give the market more insights into when the RBA will look to rase rates. This Will be followed by the RBA Gov Lowe speaking at 1:30 PM toady. Later this afternoon the market will then again turn its attention to the USA for overnight tonight (12:30am our time) they will be releasing their Retail Sales Figures.
The Aussie pair overcame firmer US Dollar Index (DXY) and Treasury yields to mark a positive week-start before easing from 0.7371 ahead of the Reserve Bank of Australia’s (RBA) latest monetary policy meeting minutes and a speech from Governor Lowe.
A surprisingly strong China Retail Sales and Industrial Production data for October joined the People’s Bank of China’s (PBOC) liquidity injection to offer a positive start to the AUD/USD prices. China Retail Sales rose past 3.5% market forecast and 4.4% prior to 4.9% YoY whereas Industrial Production (IP) jumped to 3.5% versus 3.0% expected and 3.1% prior release. Further, the People’s Bank of China (PBOC) injected CNY1 trillion via one-year medium-term lending.
The Aussie Dollar – Technical Analysis
AUD/USD has managed to recover all the way back to its 50-day moving average in the 0.7360s on Monday, having failed to consolidate its break of the 0.7300 level of support.
Resistance on the Topside – If the market can break through the 50-Day MA the next level of resistance will be at 0.7415 then more resistance at 0.7555 which holds significance as it’s within a couple of points of the 200-Day MA at 0.7539.
Support on the Downside – If the market falls and can consolidate a break of the 0.7300 level of support, the next level would be 0.7172 then 0.7110.
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AUD/USD Daily Chart
Iron Ore Price USD/T
Major Global Markets
- Stocks
- S&P 500 closed at 4682
- NASDAQ closed at 16203
- ASX 200 closed at 7470
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7343
- AUD/JPY – At the time of writing this report trades at 83.84
- AUD/CNH – At the time of writing this report trades at 4.6859
- DXY (US Dollar Index) – At the time of writing this report trades 95.524
- AUD/EUR – At the time of writing this report trades 0.6461
- Bonds
- US 10-year Bonds are currently at 1.616
- Commodities
- Iron Ore – Trading at USD/T 92.36
- Gold – trading at USD/OZ 1863
- Brent Crude Oil – Trading at USD/Bbl 82.12