AUD/USD Targets Month-to-month Excessive as Omicron Danger Fades and Nasdaq 100 Rallies

Australian Greenback, AUD/USD, Omicron, Danger Developments, Oil – Speaking Factors

  • Asia-Pacific markets set for rosy open after Wall Street good points for a second day
  • Australian non-public sector knowledge in focus as risk-taking in broader markets enhance
  • AUD/USD goals on the December excessive after breaking above key resistance degree

Thursday’s Asia-Pacific Forecast

Asia-Pacific buying and selling seems to be set for a rosy begin to the day after shares gained on Wall Road in a single day. Expertise shares led the good points in New York, with the Nasdaq-100 Index (NDX) closing 1.21% larger. The US Dollar fell versus most of its friends, whereas risk-sensitive currencies just like the Australian Dollar gained. Treasuries had been little modified. Traders’ fears over the Omicron variant proceed to fall as constructive knowledge on hospitalization charges cross the wires. Danger belongings acquired a lift from constructive US financial knowledge as properly, with Q3 GDP progress receiving an upward revision and shopper confidence seeing a robust uptick for December.

South Africa and Scotland reported knowledge displaying that these with Omicron infections had been at a a lot decrease danger of hospitalization versus the Delta pressure. Whereas it’s not conclusive, most indicators now level to a extra contagious virus, but in addition one that’s much less lethal. Some well being coverage consultants consider that will assist speed up the tip of the pandemic. The brand new pressure has already triggered a flurry of border closures, nonetheless, and people could drag on progress into the New Yr. New Zealand earlier this week introduced that border closures will keep in impact till February.

In step with the risk-on tone in markets, Crude and Brent oil costs rose in a single day. A US authorities report confirmed crude oil stockpiles fell 4.72 million barrels for the week ending December 17. Analysts had been anticipating a drop of solely 2.75 million barrels. Nevertheless, stockpiles at Cushing, Oklahoma rose by 1.46 million barrels, which can cap upside within the commodity. Gasoline shares additionally rose sharply, with a 5.53 million barrel construct. That would add a headwind to demand for oil in the course of the busy vacation journey season.

At this time’s financial docket doesn’t provide a lot in the best way of potential high-risk occasions. The buying and selling week is shortly drawing to a detailed because the Christmas vacation approaches. Many markets throughout the APAC area can be closed on Friday. Australia will report non-public sector credit score progress for November. Later within the day, Indonesia will report its M2 cash provide (Nov), and the Philippines will see commerce knowledge for November cross the wires. Japan can also be set to launch closing readings on its October coincident index and main financial index.

AUD/USD Technical Forecast

AUD/USD broke above its September low at 0.7170 in a single day, a degree that has served as resistance by means of December. The December excessive at 0.7223 now serves as the following main barrier. A break larger would put the falling 50-day Easy Transferring Common (SMA) in focus. A bullish Engulfing candlestick from Tuesday seem to inject some power into the foreign money pair. MACD can also be enhancing together with the RSI oscillator.

AUD/USD Day by day Chart

aud-usd chart

Chart created with TradingView

— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the feedback part beneath or @FxWestwater on Twitter

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