Audusd declines amidst market anticipation for key economic data releases

AUDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.44%	-29.1 Pips
Week to-date	-0.43%	-28.6 Pips
October	-4.86%	-336 Pips

Upcoming key events (London Time)

Wed 12:30 AM AUD CPI Inflation Rate (3-mth)
Wed 12:30 AM AUD Monthly CPI Indicator (12-mth)
Wed 12:30 AM AUD Retail Trade Turnover (seasonally adjusted) (1-mth)
Wed 12:30 PM USD GDP annual rate

What happened lately

There are no major economic news reports currently affecting the Australian economy. However, several high-impact economic events are scheduled to take place shortly. These include the release of the Consumer Price Index (CPI) Inflation Rate and the Monthly CPI Indicator, along with data on Retail Trade Turnover. All these pieces of information will be released on Wednesday at 12:30 AM, constituting crucial indicators of the Australian economy’s health. The CPI Inflation Rate and Monthly CPI Indicator will provide insights into price level changes for goods and services, reflecting the inflationary pressures within the economy, whereas the Retail Trade Turnover figures will shed light on consumer spending and retail sales. A strong showing could signal economic growth, while weaker results might highlight potential economic vulnerabilities.

In the United States, a high-impact economic event scheduled for Wednesday at 12:30 PM is the release of the Gross Domestic Product (GDP) annual rate. The GDP data will offer a comprehensive overview of the economic activity and growth in the U.S., representing a critical measure of economic performance. A robust GDP growth rate can boost demand for the U.S. dollar, influencing global currency markets. Conversely, any weakness could translate to concerns over the economic outlook, potentially impacting investor confidence and currency valuations.

The recent drop in the AUDUSD, noted at 0.65803 with a decline of 0.44%, reflects current market sentiment ahead of these economic releases. The upcoming data releases in Australia, particularly the inflation and retail trade figures, will likely play a significant role in determining the Australian dollar’s short-term trajectory. If the figures indicate rising inflation and robust consumer spending, it may bolster the Australian dollar, potentially leading to a recovery against the U.S. dollar. Meanwhile, the U.S. GDP figures might exert counterbalancing forces on the exchange rate, depending on the economic performance indicators they reveal. Investors will closely monitor these developments to gauge monetary policy directions and market sentiment, influencing currency movements between the Australian dollar and the U.S. dollar.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Monday dropped -0.44% to 0.65803. Price is below 9-Day EMA while Stochastic is falling in oversold zone.

Updated daily direction for AUDUSD looks bearish as the pair posted lower in Monday trading session.

Looking ahead for the day, immediate support level is at S1 0.65695 with break below could see further selling pressure towards S2 at 0.65588. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.66102 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.65791 would indicate selling pressure.

For the week to-date, take note that AUDUSD is bearish as the pair posted lower by -0.43%.

Key levels to watch out:

#AUDUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#AUDUSD” num=3 showheader=false]