Australian Dollar surges on China stimulus pledge
The focus now is on whether there will be additional measures for the struggling real estate sector to address demand and infrastructure. China is Australia's largest two-way trading partner for goods and services. Any improvement in China's growth prospects is a positive signal for the
AUDUSD
.
Meanwhile, Wednesday's data is expected to show that Australia's CPI fell to 1.0% quarterly in Q2 from 1.4% in Q1 and 6.2% annually in Q2 2023 from 7.0% in the previous quarter. On a monthly basis, CPI is expected to decrease to 5.4% in June from 5.6% in May. With Australia's unemployment rate near a five-decade low, slower-than-expected price pressures could make the RBA's August 1st meeting a live one.
GBPAUD
: Risks retreat
GBP/AUD faces a significant obstacle at the 2021 horizontal trendline around 1.9200. There is a concern of a decline towards the June low of 1.8500 due to a negative momentum divergence. However, as long as the cross stays above the 200-day moving average (around 1.8250), the overall upward pressure is likely to persist.
EURAUD
: Upward pressure could be fading
EUR/AUD has struggled to surpass the strong resistance at 1.6515. It is expected to weaken in the short term and may initially fall towards the mid-July low at 1.6230. The 200-day moving average, currently around 1.5900, could also be a potential support level.
AUDUSD
. Meanwhile, Wednesday's data is expected to show that Australia's CPI fell to 1.0% quarterly in Q2 from 1.4% in Q1 and 6.2% annually in Q2 2023 from 7.0% in the previous quarter. On a monthly basis, CPI is expected to decrease to 5.4% in June from 5.6% in May. With Australia's unemployment rate near a five-decade low, slower-than-expected price pressures could make the RBA's August 1st meeting a live one.
GBPAUD
: Risks retreat GBP/AUD faces a significant obstacle at the 2021 horizontal trendline around 1.9200. There is a concern of a decline towards the June low of 1.8500 due to a negative momentum divergence. However, as long as the cross stays above the 200-day moving average (around 1.8250), the overall upward pressure is likely to persist.
EURAUD
: Upward pressure could be fading EUR/AUD has struggled to surpass the strong resistance at 1.6515. It is expected to weaken in the short term and may initially fall towards the mid-July low at 1.6230. The 200-day moving average, currently around 1.5900, could also be a potential support level.
