Audusd rises amid mixed economic signals from Australia and US

AUDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.02%	1.2 Pips
Week to-date	-0.33%	-21.6 Pips
December	-0.41%	-26.6 Pips

Upcoming key events (London Time)

Wed 12:30 AM AUD GDP (3-mth)
Wed 06:45 PM USD Federal Reserve Chair Jerome Powell speech

What happened lately

In Australia, the AiG Industry Index witnessed a significant improvement, climbing to -10.8 points in November from -28.8 points in October. This uptick reflects a strengthening in the industrial sector, gaining traction as the economic conditions seem to be stabilizing. On the downside, building approvals for October showed a decrease, falling to 4.2% from a revised figure of 5.8% in the previous month, indicating a slowdown in construction activities. Conversely, retail trade turnover exhibited a positive trend with an increase to 0.6% in October, up from 0.1% in September. This suggests a recovery in consumer spending, which could signal improving economic confidence. Additionally, TD Securities Inflation saw a slight decrease, with the annual rate dropping to 2.9% in November from 3% in October, hinting at moderating inflationary pressures in Australia.

In the United States, the Job Openings and Labor Turnover Survey by the Bureau of Labor Statistics reported an increase in job openings, rising to 7.744 million in October from a revised figure of 7.372 million in September. This surge indicates a robust labor market, suggesting strong demand for workers and a potentially healthy economic outlook.

The economic data from Australia and the United States offered mixed signals, which are reflected in the AUDUSD’s slight increase of 0.02% to 0.64808, exhibiting a phase of consolidation. Australia’s improved industrial index and increased retail turnover could support the Aussie dollar, while weaker building approvals and slightly reduced inflation may temper optimism. Meanwhile, the US job market strength adds upward pressure on the USD. Looking ahead, market participants are likely to focus on upcoming key events such as Australia’s GDP data and Federal Reserve Chair Jerome Powell’s speech. These events could provide further direction and influence the currency pair significantly. Positive Australian GDP growth could boost the AUD, whereas hawkish comments from Powell regarding US monetary policy could favor the USD, increasing trading volume and volatility in the AUDUSD pair.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Tuesday rose 0.02% to 0.64808. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.64555 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.65046 or trades above daily pivot 0.64801. Break above could target R1 at 0.65053. While to the downside, we are looking at 0.64555 (S1) and daily low of 0.64548 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.65046 may suggest continuation after recent positive movement.

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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