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 9th of December 2021
- AUD – RBA Gov Lowe speaking at 9:05AM AEDT
- CNY – CPI Y/Y
- USD – (Overnight) Unemployment claims.
The Aussie Dollar – Fundamentals
With no real fundamental information coming out yesterday the market moved with a technical bias.
The Aussie Dollar has extended on its recent run of gains, with the rally accelerating as the pair touched a key level of resistance around 0.7170. The AUD/USD has extended its gains on the week to now just more than 2.5%.
Wednesday has seen an apparent extension of the technical buying, though the bulls are yet to push Aussie back to within reach of its 21-day moving average, which currently resides just above 0.7200.It may be a struggle for the Aussie to continue its sharp rally into the end of the week. On the four-hour candlesticks, AUD/USD’s 14-period Relative Strength Index has rapidly reversed from under 30 (oversold) as recently as last Friday to now above 70 (overbought). This may be taken as a profit-taking signal that slows the current rally.
Commodity prices remain buoyant, with oil and copper prices up more than 1.0% on the spot market, boosted following this week’s strong China import figures and amid efforts by the PBoC to further ease financial conditions. This has continued to provide tailwinds for the Aussie, while Tuesday’s RBA meeting is likely adding to the bullish mix.
The Aussie Dollar – Technical Analysis
Resistance on the Top Side – the market broke through 0.7110overnight and is not testing the 0.7172 resistance level. If 0.7172 is broken we see more resistance at 0.7300, which is very close to the 50 Day MA (0.7315)
Support on the Downside – if the market bounces off resistance and falls, we see support at 0.7110 with more support at the psychological level of 0.7000. If the market breaks 0.7000 continues to fall there is the support at 0.6921 and then at 0.6800.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
- Stocks
- S&P 500 closed at 4701
- NASDAQ closed at 16383
- ASX 200 closed at 7405
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7168
- AUD/JPY – At the time of writing this report trades at 81.53
- AUD/CNH – At the time of writing this report trades at 4.5459
- DXY (US Dollar Index) – At the time of writing this report trades 95.970
- AUD/EUR – At the time of writing this report trades 0.6320
- Bonds
- US 10-year Bonds are currently at 1.528
- Aussie 10-year Bonds are currently at 1.663
- Commodities
- Iron Ore 62% – Trading at USD/T 106.77
- Gold – trading at USD/OZ 1782
- Brent Crude Oil – Trading at USD/Bbl 75.96