AUD/USD Pair Punctures Daily Height Under 0.7300 on the Back of Mixed Data from Australia and Softer US Dollar

Breaking New Grounds

Bullish traders of the AUD/USD currency pair tried to regain their grounds on Thursday as the intraday high was poked down. This followed the publication of the country’s Trade and Housing reports. The released quote bored through the daily high at 0.7265.

The Trade Balance of Australia rose sharply to 9314M against the forecast of 8500M expected of it. The number was more impressive when compared to the previous print of 7457M. But, on the other hand, building permits fell under -12.5% month-on-month, which was forecasted to be -18.5%, against the prior figure of 43.5% for March.

AUD/USD price chart. Source TradingView

Further information showed that importation reduced by 5.0% against 12.0% initial growth. Interestingly, export rates were stable and unchanged in the same period of time.

Aside from the data, the pullback around the US Dollar equally seems to have served the interest of the AUD/USD currency pair buyers recently. With that in the bag, the US Dollar Index fell by 0.05% to 102.45 as it got to a weekly low. The new weekly low point was the result of three days of a consecutive slide.

The US Dollar measure fell the most in two straight months just a day after the US Federal Reserve announced its 50 basis points interest rate increase. On the same day, clues from speeches about further tightening did little to move bulls. It can be said that it is because the Fed Chairman declined suggestions of a 75 basis points rate increase at the next meetings.

China Returns to the Market

It should be taken into account that the return of China to the markets is giving traders a rethink. Careful thought was necessitated after the Federal Reserve’s announcement and the Security and Exchange Commission’s decision to put more than 80 Chinese companies on probation from the US exchange.

On an equal line of worry is the prolonged COVID crisis that emerged in China and the EU’s latest sanctions on Russia. In the midst of all these, the S&P 500 futures had some losses in spite of the rally on Wall Street. Meanwhile, there was a rise of 0.66% to 7,352 in the ASX 200 of Australia as of the early hours of Thursday.

As the market looks forward, the unemployment claims of the US, the Non-farm payroll, as well as Unit Labor costs are major events over the AUD/USD pair. The result of the monetary policy meeting from the Bank of England is also another very important event to watch.

Nevertheless, more focus will be on the qualitative factors stated above. The same measure of attention will also be given to the concerns that surround the Non-farm Payroll.

Technical Outlook

It is the obvious upward snap of the low point of March at 0.7165 that has kept buyers of the AUD/USD currency pair hopeful so far. The 100 and 200-period daily moving averages at 0.7265 and 0.7285, respectively, are strong resistance figures that challenge recent advances.

Leave a Reply

Your email address will not be published. Required fields are marked *