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 Thursday the 2nd of December 2021
- USD – ADP Non-Farm Employment Change
- GBP – BOE Gov Bailey Speaks
- USD – Fed Chair Powell Testifies
- USD – ISM Manufacturing PMI
- OPEC-JMMC Meetings
- AUD – Retail sales
- AUD – Trade Balance
The Aussie Dollar – Fundamentals
The Australian dollar remains on the back foot against the US Dollar, with AUD/USD trading near its daily low heading into the Asian opening. The pair peaked at 0.7172 on Wednesday, shedding ground during US trading hours, as US equities retreated from their intraday highs although holding on to gains.
Australian data was encouraging, as the Q3 Gross Domestic Product printed at -1.9% QoQ, better than the -2.7% expected. The October AIG Performance of Manufacturing Index improved to 54.8 in October from 50.4 in the previous month, while the November Commonwealth Bank Manufacturing PMI improved to 59.2 from 58.2. The country will publish the October Trade Balance during the upcoming Asian session.
Although there is more information coming out daily about the new Covid-19 variant it does seem that the market is hesitated to take on any additional risk currently. Resulting in a volatile and falling AUD.
The Aussie Dollar – Technical Analysis
AUD/USD bulls are stepping in at a familiar level of demand on the hourly time frame. However, the longer-term momentum is with the bears as we look to see if the market can consolidate its break of the significant 0.7110 level of support.
Resistance on the Top Side – If the market rebounds higher resistance will start at 0.7172, then 0.7300 which will be closely followed by the 50-Day MA at 0.7328.
Support on the Downside – We will be watching the market very closely today to determine if the market will consolidate the break off the key 0.7110 support level. If the market continues to fall there is the psychological support at 0.7000 and beyond that 0.6800.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
- Stocks
- S&P 500 closed at 4567
- NASDAQ closed at 16241
- ASX 200 closed at 7256
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7105
- AUD/JPY – At the time of writing this report trades at 80.24
- AUD/CNH – At the time of writing this report trades at 4.5245
- DXY (US Dollar Index) – At the time of writing this report trades 96.038
- AUD/EUR – At the time of writing this report trades 0.6279
- Bonds
- US 10-year Bonds are currently at 1.404
- Aussie 10-year Bonds are currently at 1.635
- Commodities
- Iron Ore 62% – Trading at USD/T 103.17
- Gold – trading at USD/OZ 1782
- Brent Crude Oil – Trading at USD/Bbl 68.88