AUD/USD ANALYSIS & TALKING POINTS
- Tug of battle between Chinese language and U.S. components dictate AUD value motion.
- Thinning liquidity reflective in AUD/USD as markets await basic catalyst.
Really helpful by Warren Venketas
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AUSTRALIAN DOLLAR FUNDAMENTAL BACKDROP
The professional-growth Australian greenback is in a consolidatory part of current being pushed and pulled by exterior international components. Main drivers have been Chinese language optimism round stimulating financial progress in 2023 (boosting commodity costs) as nicely a fluctuating USD primarily based on U.S. financial knowledge. Markets could also be barely overreacting to international ‘danger on’ sentiment contemplating the worsening COVID scenario in China potential exposing the Aussie greenback to subsequent weak spot within the coming week in addition to Q1 of 2023.
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Subsequent week is extraordinarily mild within the midst of the festive interval with no Australian knowledge scheduled, U.S. releases will take priority. The housing and labor markets shall be in focus and supply extra steering for the Fed in 2023.
ECONOMIC CALENDAR
Supply: DailyFX financial calendar
TECHNICAL ANALYSIS
AUD/USD DAILY CHART
Chart ready by Warren Venketas, IG
Each day AUD/USD value motion stays under the psychological 0.6700 help stage. After the current rising wedge sample (black) breakout, expectations might have been for higher draw back however the AUD has managed to stay surprisingly elevated. That being stated, there’s nonetheless scope for additional decline however the Relative Energy Index (RSI) suggests market hesitancy on the midpoint 50 mark.
Key resistance ranges:
Key help ranges:
IG CLIENT SENTIMENT DATA: MIXED
IGCS exhibits retail merchants are at the moment LONG on AUD/USD, with 61% of merchants at the moment holding lengthy positions. At DailyFX we sometimes take a contrarian view to crowd sentiment however current modifications in lengthy and quick positioning end in a short-term cautious bias.
Contact and followWarrenon Twitter:@WVenketas