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 Monday the 30th of November 2021
- AUD – RBA Deputy Gov Debelle Speaks
- JPY – Unemployment rate – forecast 2.8%
- AUD – Building Approvals m/m – forecast -1.4%
- CNY – Manufacturing PMI – forecast 49.8
The Aussie Dollar – Fundamentals
The AUD/USD pair trades at the high of 0.7159 overnight, little changed on a daily basis at around 0.7130. The pair fluctuated between gains and losses mainly affected by the market’s sentiment, bouncing from an intraday low of 0.7113. US President said that no current restrictive measures will be taken at this point in time, despite the rapid global spread of a new coronavirus variant, Omicron. However, the advance is limited as the demand for the US dollar returned, weighing on metal prices, which in turn upset the Aussie.
Data wise, Australia had the Q3 Company Gross Operating Profits, which were up 4% in the quarter, better than the 3% expected, although well below the previous 7.1%. It will publish October Building Permits and the Q3 Current Account Balance on Tuesday.
US and European stocks partially recovered on Monday after the news of the Omicron coronavirus variant triggered a sharp sell-off late last week, as investors settled in for a renewed period of uncertainty over the new variant, Omicron. Wall Street’s benchmark S&P 500 index gain 1.6 per cent in mid-afternoon trading, after falling 2.3 per cent in a truncated trading session on Friday. In Europe, the regional Stoxx 600 closed up 0.7 per cent, after dropping more than 3.5 per cent on Friday. London’s FTSE 100 gained 0.9 per cent.
Analysts cautioned that markets would remain volatile, however, as investors awaited more information on the potential of the new variant to determine the path of economic growth.
The Aussie Dollar – Technical Analysis
The AUD/USD pair trades near this year low at 0.7105, the immediate support level. The daily chart shows that it is oversold, with technical indicators barely correcting extreme readings. Meanwhile, the 20 SMA keeps heading firmly lower after crossing below the 100 SMA, which also heads south. The 4-hour chart shows the pair met sellers around a bearish 20 SMA, currently at around 0.7160. The downside will likely gain momentum on a break below 2021 low, with investors then eyeing the 0.7000 region.
Resistance on the Top Side – If the market rebounds higher resistance will start at 0.7160, then 0.7200 which will be closely followed by the 20-Day MA at 0.7240.
Support on the Downside – If the market continues to fall after breaking the 0.7105 level, we see immediate support at 0.7070, then 0.7025.
Major Global Markets
- Stocks
- S&P 500 closed at 4659
- NASDAQ closed at 15,491
- ASX 200 closed at 7234
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7135
- AUD/JPY – At the time of writing this report trades at 81.05
- AUD/CNH – At the time of writing this report trades at 4.5577
- DXY (US Dollar Index) – At the time of writing this report trades 96.11
- AUD/EUR – At the time of writing this report trades 0.6323
- Bonds
- US 10-year Bonds are currently at 1.50%
- Aussie 10-year bonds are currently at 1.72%
- Commodities
- Iron Ore 62% – Trading at USD/T 94.44
- Gold – trading at USD/PZ 1785
- Brent Crude Oil – Trading at USD/Bbl 73.45