Australian Greenback, AUD/USD, Omicron Variant, Q3 Enterprise Inventories – Speaking Factors
- Rising Covid variant prone to weigh on sentiment in APAC buying and selling
- Australia will report third-quarter enterprise inventories, firm income
- AUD/USD flirts with the August low following 4 weekly losses
Monday’s Asia-Pacific Forecast
The chance-sensitive Australian Dollar faces a tricky week forward towards the US Dollar as international leaders transfer to chop off journey with South Africa following the invention of a brand new Covid variant, dubbed “Omicron”. The brand new extremely mutated pressure of the virus despatched US shares crashing decrease in Friday’s Wall Street session, with the Dow Jones Industrial Common (DJIA) closing 2.53% within the crimson.
Asian fairness markets have been already closed for the week when the World Well being Group (WHO) labeled the brand new pressure as a “variant of concern,” the best degree used for rising Covid threats. Inventory indexes throughout the Asia Pacific area will probably value within the new worries right now, which might ship shares deep into the crimson. Buyers will probably be awaiting any WHO updates as scientists race to evaluate the brand new pressure’s potential menace.
Australia will report third-quarter enterprise inventories together with firm gross income this morning. Analysts count on the information to cross the wires at 0.0% and three.0%, respectively. That might be a lower in each knowledge units in comparison with the second quarter, with lockdowns throughout New South Wales and Victoria probably being accountable for the weak point. Australia’s vaccination price is nearing 90% for these over 16, which could make one other spherical of lockdowns unlikely going ahead.
Japan’s retail gross sales crossed the wires at 0.9% for October this morning, up from a revised -0.5% in September however beneath the 1.1% anticipated by analysts. Later right now, Indonesia reviews October bike gross sales, and the Philippines will see its retail value index for September cross the wires. Singapore can also be set to launch final month’s export and import value knowledge.
AUD/USD Technical Forecast
AUD/USD is up towards the August low (0.7106) after final week’s large 1.62% drop. That was the fourth consecutive weekly decline for the foreign money pair. Breaking beneath 0.7106 could have costs buying and selling at ranges not seen since November 2020. A current bearish crossover between the 20- and 50-day Easy Transferring Averages (SMA) places a bearish outlook on near-term motion.
The RSI and MACD oscillators are additionally monitoring firmly decrease. If bulls can defend the extent and costs rebound, the September low will come into play as potential resistance. A break above that brings the 0.72 psychological degree again into focus.
AUD/USD 8-Hour Chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the feedback part beneath or @FxWestwateron Twitter