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 24th of November 2021
- USD Prelim GDP Q3: exp. 2.2%
- USD Core Durable Goods Order Oct: exp. 0.5%
- USD Durable Goods Orders Oct: exp. 0.2%
- USD Unemployment Claims: exp. 259K
- USD Core PCE Price Index Oct: 0.4%
- USD Revised UoM Consumer Sentiment: exp. 66.8
- USD Crude Oil Inventories: prev. -2.1M
- USD FOMC Meeting Minutes
The Aussie Dollar – Fundamentals
The US data dump ahead of the long weekend and Thanksgiving Holidays in North America has seen the US dollar mark fresh 16-month cycles highs on Wednesday. The US Dollar Index DXY has rallied to a high of 96.937.
Investors have started to price the prospect that the Federal Reserve will begin hiking rates in mid-2022, in stark contrast to the European Central Bank which is expected to remain more dovish as covid risks loom.
Overnight, the Federal Reserve unveiled the last FOMC meeting minutes, which showed that some participants would like to adjust the QE’s taper pace and raise rates sooner than anticipated if inflation runs hot.
According to Reuters, “some participants suggested that reducing the pace of net asset purchases by more than $15B each month could be warranted.” Further added and It is worth noting that “some participants preferred a somewhat faster pace of reductions that would result in an earlier conclusion to net purchases.”
The Aussie Dollar – Technical Analysis
After the market broke out of the up-trending channel (Black Dotted Line) it has continued lower tracking towards its September low and closest support level of 0.7172. We will be watching the price action around this support level to see if it the market will rebound or if momentum behind the it the market will crash through.
Resistance on the Top Side – If the market rebounds higher resistance will start above 0.7300, the 50-Day MA (0.7342) 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 – If the market continues to fall after breaking out of the channel, we see immediate 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 4701
- NASDAQ closed at 16358
- ASX 200 closed at 7399
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7195
- AUD/JPY – At the time of writing this report trades at 83.05
- AUD/CNH – At the time of writing this report trades at 4.5979
- DXY (US Dollar Index) – At the time of writing this report trades 96.83
- AUD/EUR – At the time of writing this report trades 0.6423
- Bonds
- US 10-year Bonds are currently at 1.643
- Aussie 10-year Bonds are currently at 1.862
- Commodities
- Iron Ore 62% – Trading at USD/T 94.33
- Gold – trading at USD/OZ 1788
- Brent Crude Oil – Trading at USD/Bbl 82.21