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 Wednesday the 22nd of December 2021
- No meaningful data being released during the day
- Overnight
- USD Final GDP q/q
The Aussie Dollar – Fundamentals
Analysts at Canadian Imperial Bank of Commerce (CIBC) forecast the AUD/USD pair will rise in the months ahead, reaching 0.73 by the end of the first quarter of next year and 0.74 by the end of the second quarter. They see the outlook of the Reserve Bank of Australia supporting the recovery of the Australian dollar.
The Aussie Dollar has rebounded from a test of major support at 0.7000, and while in a mode of correction to the decline of the last month, looks set to extend somewhat higher. A combination of recent factors supports the near-term positive outlook. They include a more positive economic outlook from the RBA, and from China, a RRR cut, easing of property curbs, and strong trade data.
A stronger USD, a divergence in the outlook for monetary policy between the Fed and the RBA, and concerns over supply chain disruptions, particularly as they relate to demand from China, have all had impacts on the Aussie Dollar.
The Aussie Dollar – Technical Analysis
The market continues to bounce between support at 0.7110 and resistance at 0.7172. We will continue to watch the channel closely to see when the market will break from this pattern.
Resistance on the Top Side – We see resistance at 0.7172. If 0.7172 is broken we see more resistance at the 50 Day MA(0.7284), then closely followed by resistance at 0.7300
Support on the Downside – The market bounced off support at 0.7110 and continues to trade within the current channel. If the market falls, we see further support at the psychological level of 0.7000. If the market breaks 0.7000 and 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 4568
- NASDAQ closed at 15689
- ASX 200 closed at 7292
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7150
- AUD/JPY – At the time of writing this report trades at 81.54
- AUD/CNH – At the time of writing this report trades at 4.5567
- DXY (US Dollar Index) – At the time of writing this report trades 96.478
- AUD/EUR – At the time of writing this report trades 0.6338
- Bonds
- US 10-year Bonds are currently at 1.467
- Aussie 10-year Bonds are currently at 1.618
- Commodities
- Iron Ore 62% – Trading at USD/T 113.64
- Gold – trading at USD/OZ 1789
- Brent Crude Oil – Trading at USD/Bbl 73.96