- AUD bounces off the 0.7380 lows to regain the 0.7400 level.
- Risk aversion decreases with energy prices retreating from highs.
- AUD / USD: Consolidation before further appreciation towards 0.7450 – UOB.
The AUD it ignored the weakness seen during the Asian and European sessions on Monday. The pair AUD/USD it has bounced off lows of 0.7380 to hit 0.715 at time of writing, turning positive for the day.
AUD recovers as risk appetite improves
The risk-sensitive Australian dollar has made up lost ground, helped by somewhat improved market sentiment during the US trading session. The major Wall Street indices have turned positive after opening lower as falling oil prices have eased concerns about the consequences of rising inflation.
Crude prices are retreating from another multi-year high today, reigniting fears about inflationary pressures frustrating the global economic recovery. WTI prices have retreated to $ 82.11 after hitting $ 83.85 earlier today, with Brent prices trading at $ 84.40 at the time of writing, declining from new three-year highs above 86.00. $ today.
Furthermore, disappointing figures from China, one of Australia’s main trading partners, have raised doubts about the world’s second largest economy, adding downward pressure on the AUD. Based on Chinese GDP, the country’s economy grew at a 4.9% pace in the third quarter, disappointing expectations of a 5.2% increase, while industrial production rose 3.1%, versus market expectations of a reading. 4.5%.
AUD / USD: Consolidates before heading towards 0.7450 – UOB
According to the UOB currency analysis team, technical indicators suggest that the pair could consolidate before resuming the uptrend: “We spotted the build-up in bullish momentum last Friday (Oct 8, 0.7310) and have held a positive view. in AUD of course. As the AUD rallied, we highlighted yesterday (Oct 14, 0.7380) that “0.7405 appears to be within our grasp and a breakout from this level would open the way for further AUD gains towards 0.7450”.
Technical levels
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