- The Australian dollar faced winds against in the middle of a slower progress in commercial conversations between the US and China.
- The fortress of the US dollar pushed Aussie down, despite the positive global feeling.
- Economic uncertainty continues, with important publications of inflation and employment data ahead.
- The market approach remains in the next movements of the US Federal Reserve and in global commercial resolutions.
The Australian dollar (AUD) faced some pressure in the market after the disappointing progress in commercial negotiations between the US and China. Although the global risk environment remains positive, tariffs and concerns on commercial policy impact the movement of AUNSIE. Investors now expect key US data to obtain more address.
Daily summary of market movements: Without progress in conversations between the US and China
- The Australian dollar fights while commercial uncertainties between the US and China weigh on the feeling of the market.
- The US dollar (USD) remains strong, continuing its impact on other currencies, including the Australian dollar.
- The operators are cautious before the next publication of US inflation data, which is expected to influence market movements.
- Despite the positive feeling in global markets, Aussie is still under pressure, with limited domestic catalysts.
- The prices of global raw materials saw a slight increase, but Aussie failed to capitalize on the profits.
- The Bank of the Australian Reserve (RBA) remains in a waiting pattern, closely observing international developments.
- Key economic data is expected, such as Australian employment figures, next week, with markets attentive.
- Commercial conversations between the US and China remain an important approach, with little concrete progress in tariffs.
- Global markets have a general mood of risk aversion, limiting the appetite by risk -sensitive currencies such as aussie.
- The Australian dollar continues to follow the largest movements of the US dollar in the absence of strong domestic drivers.
- China’s economic perspectives are still uncertain, impacting the demand for Australian exports and exerting more pressure on aussie.
- The currencies linked to raw materials, including the Australian dollar, are seeing mixed performances amid the global economic perspective.
- The next key test for the Australian dollar will be the publication of the next economic data, particularly employment and inflation numbers.
Technical analysis
The Australian dollar is showing some bearish signals while negotiating about 0.6400. The relative force index (RSI) remains neutral in 53.11, while the MACD continues to indicate a purchase signal, suggesting an ascending movement potential. The key support levels are 0.6394, 0.6385 and 0.6376, with resistance at 0.6413, 0.6418 and 0.6423. Mobile socks also suggest a mixed perspective, with the 20 -day SMA (0.6394) supporting the upward movement, while the 200 -day SMA (0.6461) is bassist. The Australian dollar continues to consolidate, with the operators focused on the next economic publications to obtain direction.
Faqs Australian dollar
One of the most important factors for the Australian dollar (Aud) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AUD, with the opposite effect if the commercial balance is negative.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
