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 Friday the 26th of November 2021
- US Bank Holiday
- EUR ECB President Lagarde Speaks
- GBP BOE Gov Bailey Speaks
- AUD Retail Sales Oct: exp. 2.6%
The Aussie Dollar – Fundamentals
Overnight the market was quiet compared to what we have been used to over the last couple of weeks, this can mainly be contributed to the Public holiday in the US for Thanksgiving. Although that did not prevent the pair from sliding deeper towards the daily 0.7191 lows of October. The price fell from a high of 0.7209 to a low of 0.7179 on the day. The majority of the price action happening in the London session open with lows made in the New York session open, from there the pair has drifted sideways.
The greenback edged lower on the day. It was drifting from its highest level since July 2020 that was printed against the euro, despite the covid concerns in Europe and the expectations that the US Federal Reserve will raise rates sooner than other major central banks.
The Aussie Dollar – Technical Analysis
The Aussie Dollar has a downward bias, as the 50- and 200-Day Moving Averages (DMA’s) are downwards sloping and are well above the spot price. Also, the break of an upslope trendline (Black Dotted Line) on last week’s Friday, followed by intense selling pressure on Monday, dented AUD bullish prospects, as AUD bulls have struggled to reclaim the 0.7250 level.
Resistance on the Top Side – If the market rebounds higher resistance will start above 0.7300, the 50-Day MA (0.73411) 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 0.75171.
Support on the Downside – If the market continues to fall after breaking out of the channel, we see immediate support at 0.7172, then 0.7110 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 16408
- ASX 200 closed at 7407
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7188
- AUD/JPY – At the time of writing this report trades at 82.88
- AUD/CNH – At the time of writing this report trades at 4.5884
- DXY (US Dollar Index) – At the time of writing this report trades 96.789
- AUD/EUR – At the time of writing this report trades 0.6411
- Bonds
- US 10-year Bonds are currently at 1.636
- Aussie 10-year Bonds are currently at 1.838
- Commodities
- Iron Ore 62% – Trading at USD/T 94.33
- Gold – trading at USD/OZ 1790
- Brent Crude Oil – Trading at USD/Bbl 82.24