Major economic events to impact AUDUSD dynamics this week

AUDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.66%	-43.2 Pips
Week to-date	-0.51%	-33.4 Pips
November	-1.13%	-74.5 Pips

Upcoming key events (London Time)

Tue 07:00 PM USD FOMC Meeting Minutes
Wed 12:30 AM AUD Monthly CPI Indicator (12-mth)
Wed 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
Wed 01:30 PM USD GDP annual rate

What happened lately

In the United States, the week kicks off with significant economic events on the horizon. On Tuesday, the Federal Open Market Committee (FOMC) Meeting Minutes will be released at 7:00 PM. These minutes are crucial as they provide in-depth insights into the Federal Reserve’s economic policy outlook and considerations. The document is often scoured for hints regarding future interest rates and the economic trajectory, affecting financial markets globally. Following this, on Wednesday at 1:30 PM, the focus shifts to the USD PCE Price Index, excluding food and energy, along with the GDP annual rate. The PCE Price Index is a key inflation indicator used by the Federal Reserve, making this data highly influential in shaping monetary policy. The GDP data will provide a comprehensive view of the overall economic health, offering insights into growth rates and economic momentum.

In Australia, attention pivots to the Monthly CPI Indicator scheduled for release on Wednesday at 12:30 AM. This indicator offers crucial insights into inflation trends over a 12-month period, reflecting the changes in consumer price levels. It plays a significant role in understanding the country’s economic conditions and can influence the Reserve Bank of Australia’s monetary policy decisions. Given its high impact, investors and traders will be closely watching to gauge the inflation trajectory and any implications for interest rate adjustments.

The AUDUSD dropped by 0.66% to 0.65030 on Monday, reflecting a downward movement in the exchange rate. The upcoming economic events have the potential to significantly impact the AUDUSD pair. With the release of the FOMC Meeting Minutes, traders will be dissecting the document for any signals of future monetary policy trends in the United States, which could lead to fluctuations in the US dollar’s strength. Additionally, the PCE Price Index and GDP figures will play a critical role. A stronger-than-expected inflation or growth outcome could further bolster the USD, applying downward pressure on the AUDUSD. Conversely, Australia’s CPI indicator release will be crucial in determining the Australian dollar’s domestic strength. If the data suggests rising inflation, it could encourage the Reserve Bank of Australia to consider tighter monetary policy, potentially supporting the AUD. As always, these data releases can lead to increased volatility in the AUDUSD exchange rate. Data provided by EconomicRecap.com.

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What can we expect from AUDUSD today?

AUDUSD on Monday dropped -0.66% to 0.65030. Price is below 9-Day EMA while Stochastic is falling.

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 0.64766 with break below could see further selling pressure towards S2 at 0.64501. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.65497 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.64867 would indicate selling pressure.

For the week to-date, take note that AUDUSD is mixed as compared to the prior week.

Key levels to watch out:

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