Good Morning,
Welcome to our daily market update where we 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 Tuesday the 23rd of November 2021
- AUD Flash Manufacturing PMI: prev. 58.2 & Service PMI: prev. 51.8
- EUR French Flash Service PMI: exp. 55.1 & Service PMI: exp. 53.1
- EUR German Flash Manufacturing PMI: exp. 56.6 & Service PMI: exp. 51.4
- EUR Flash Manufacturing PMI: exp. 57.2 & Service PMI: exp. 53.6
- GBP Flash Manufacturing PMI: exp. 57.2 & Service PMI: exp. 58.2
The Aussie Dollar – Fundamentals
Overnight the Aussie Doller was heading for a positive gain for the day and managed to trade in the 0.7270’s before the knee jerk strengthening of the USD. This was caused as the White House announced that Jerome Powell would be nominated for a second term as Fed Chair.
How the USD reacted to the news of Powell’s renomination reflects an unwind of dovish bets on a Brainard nomination. Had Brainard been nominated to the position of Chairman, the expectation amongst market participants would have been that there would have been a greater tolerance for high inflation and a greater emphasis on patience and returning to pre-Covid-19 employment levels.
The Aussie Dollar – Technical Analysis
From a technical perspective, last week’s downfall confirmed a near-term bearish break below an upward sloping channel (Black Dotted Lines) which started from the YTD low set in August. This, in turn, supports prospects for an extension of the recent sharp pullback that started around the 0.7550 level, which was the multi-month high. We will be watching this very closely today to see if the market can consolidate the confirmation of this technical bearish break.
Resistance on the Top Side – If the market rebounds higher resistance will start above 0.7300, the 50-Day MA will be the next level of resistance. We also see resistance at 0.7415 and 0.7555 which holds significance as its close to the 200-Day MA at 0.75394.
Support on the Downside – We will be watching the market closely to see to see if it will consolidate its break of the of the upward sloping channel. If the market falls and can consolidate the break, we see support at 0.7172, then 0.7100 and beyond that 0.7000.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
- Stocks
- S&P 500 closed at 4682
- NASDAQ closed at 16402
- ASX 200 closed at 7353
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7222
- AUD/JPY – At the time of writing this report trades at 82.97
- AUD/CNH – At the time of writing this report trades at 4.6140
- DXY (US Dollar Index) – At the time of writing this report trades 96.49
- AUD/EUR – At the time of writing this report trades 0.6428
- Bonds
- US 10-year Bonds are currently at 1.632
- Aussie 10-year Bonds are currently at 1.890
- Commodities
- Iron Ore 62% – Trading at USD/T 93.39
- Gold – trading at USD/OZ 1804
- Brent Crude Oil – Trading at USD/Bbl 79.54