- Aussie consolidates at six-week highs near 0.6700.
- Investors are pricing in easier monetary tightening from the Fed.
- China’s decision to ease COVID-19 restrictions has helped improve sentiment.
The AUD continues to rise for the second day in a row, fueled by US dollar weakness on growing hopes that the US Federal Reserve will begin to ease its monetary tightening path in the coming months.
On Friday, the pair appreciates 0.8% and is up nearly 4% in the last two days, having hit a fresh 6-week high at 0.6690, with limited downside attempts above 0.6650 so far.
Hopes that the Fed will ease have boosted market sentiment
Investors’ risk appetite increased on Thursday after the release of cooler-than-expected US Consumer Price Index data. Annual inflation eased to 7.7% in October, from 8.2% the previous month, beating expectations for an 8% reading.
These figures suggest that inflationary pressures may have peaked and provide some room for the US central bank to ease its monetary tightening cycle in the coming months.
The dollar and Treasury yields sank on the data, sending stocks and risk-sensitive currencies such as the Australian dollar soaring in recent sessions.
Furthermore, news that China is relaxing some of its strict COVID-19 restrictions and cutting quarantine periods has eased concerns about the potential impact on the global economy of a new round of lockdowns, further buoying sentiment. of investors.
The economic calendar is quite scarce today, since the United States celebrates Veterans Day. The only relevant indicator is the Michigan Preliminary Sentiment Index, which has fallen beyond expectations, to 54.7 from 59.9 in October, while the consensus anticipated a softer decline to 59.5.
Technical levels to watch
AUD/USD
Overview | |
---|---|
last price today | 0.6684 |
Today I change daily | 0.0068 |
Today’s daily variation in % | 1.03 |
Daily opening today | 0.6616 |
Trends | |
---|---|
daily SMA20 | 0.6386 |
daily SMA50 | 0.6504 |
daily SMA100 | 0.6706 |
daily SMA200 | 0.696 |
levels | |
---|---|
Previous daily high | 0.662 |
Previous Daily Low | 0.6387 |
Previous Weekly High | 0.6493 |
Previous Weekly Low | 0.6272 |
Previous Monthly High | 0.6548 |
Previous Monthly Low | 0.617 |
Daily Fibonacci of 38.2% | 0.6531 |
Daily Fibonacci of 61.8% | 0.6476 |
Daily Pivot Point S1 | 0.6462 |
Daily Pivot Point S2 | 0.6307 |
Daily Pivot Point S3 | 0.6228 |
Daily Pivot Point R1 | 0.6696 |
Daily Pivot Point R2 | 0.6775 |
Daily Pivot Point R3 | 0.6929 |
Source: Fx Street
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