Factors Influencing the Australian Dollar (AUD):
China's Interest Rate Decision: The AUD received upward support following the People's Bank of China's decision to keep its loan prime rate unchanged at 3.45%. This decision likely contributed to the AUD's strength.
US Dollar (USD) Dynamics: The USD attempted to rebound from a two-month low, posing a challenge to the AUD/USD pair. Weak inflation figures and economic activity in the US may have contributed to the decline in the USD.
RBA's Monetary Policy and Outlook: The Reserve Bank of Australia (RBA) is expected to hike rates in the first half of 2024. Inflation is projected to decrease, but it won't reach the RBA's target until the end of 2025. Investors are keenly watching RBA Meeting Minutes and speeches for further insights.
US Economic Data: Soft inflation figures and weak economic activity in the US may have led to a decline in the USD. The Federal Reserve's stance on inflation and monetary policy, as revealed in the upcoming FOMC minutes, is awaited by the market.
Australian Economic Indicators:
Australia's Employment Change exceeded expectations in October.
Aussie Unemployment Rate in October met expectations.
Wage Price Index grew as expected, surpassing the previous reading.
Technical Analysis of AUD/USD:
The AUD/USD pair is trading around the 0.6550 major level.
Potential barriers are identified at the psychological level of 0.6600.
Immediate support levels are noted at 0.6500 and 23.6% Fibonacci retracement at 0.6478.
Further support includes the 14-day Exponential Moving Average (EMA) at 0.6448 and the 38.2% Fibonacci retracement at 0.6438.
Additional Economic Data:
US Continuing Jobless Claims reached the highest level since 2022.
US Initial Jobless Claims rose to the highest level in nearly three months.
October's US Consumer Price Index (CPI) showed lower readings than expected.
Forward-looking Events:
The Federal Open Market Committee (FOMC) minutes on Tuesday are anticipated to provide insights into the Fed's stance on inflationary pressure and its approach to monetary policy.
Investors will likely continue monitoring these factors for further cues on the direction of the AUD/USD pair and broader market trends.
China's Interest Rate Decision: The AUD received upward support following the People's Bank of China's decision to keep its loan prime rate unchanged at 3.45%. This decision likely contributed to the AUD's strength.
US Dollar (USD) Dynamics: The USD attempted to rebound from a two-month low, posing a challenge to the AUD/USD pair. Weak inflation figures and economic activity in the US may have contributed to the decline in the USD.
RBA's Monetary Policy and Outlook: The Reserve Bank of Australia (RBA) is expected to hike rates in the first half of 2024. Inflation is projected to decrease, but it won't reach the RBA's target until the end of 2025. Investors are keenly watching RBA Meeting Minutes and speeches for further insights.
US Economic Data: Soft inflation figures and weak economic activity in the US may have led to a decline in the USD. The Federal Reserve's stance on inflation and monetary policy, as revealed in the upcoming FOMC minutes, is awaited by the market.
Australian Economic Indicators:
Australia's Employment Change exceeded expectations in October.
Aussie Unemployment Rate in October met expectations.
Wage Price Index grew as expected, surpassing the previous reading.
Technical Analysis of AUD/USD:
The AUD/USD pair is trading around the 0.6550 major level.
Potential barriers are identified at the psychological level of 0.6600.
Immediate support levels are noted at 0.6500 and 23.6% Fibonacci retracement at 0.6478.
Further support includes the 14-day Exponential Moving Average (EMA) at 0.6448 and the 38.2% Fibonacci retracement at 0.6438.
Additional Economic Data:
US Continuing Jobless Claims reached the highest level since 2022.
US Initial Jobless Claims rose to the highest level in nearly three months.
October's US Consumer Price Index (CPI) showed lower readings than expected.
Forward-looking Events:
The Federal Open Market Committee (FOMC) minutes on Tuesday are anticipated to provide insights into the Fed's stance on inflationary pressure and its approach to monetary policy.
Investors will likely continue monitoring these factors for further cues on the direction of the AUD/USD pair and broader market trends.
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