Fxequity

The Australian Greenback Edges Up as US Greenback Struggles. Can AUD/USD Proceed Larger?


Australian Greenback, AUD/USD,US Greenback, CAD, NOK, NZD, S&P 500, Omicron – Speaking Factors

  • The Australian Dollar may need discovered a base going into 12 months finish
  • APAC equities have been blended after one other document excessive for the S&P 500
  • Commodities went greater in the present day. Will it raise AUD/USD momentum?

The Australian Greenback had one other constructive day in the present day. Larger iron ore and crude oil prices additionally helped to underpin the opposite commodity linked currencies of CAD, NOK and NZD. The US Dollar index (DXY) was barely greater in Asia after in a single day losses.

Australia’s ASX 200 index made a brand new excessive for the month above 7520, however closed nearly flat.

The S&P 500 made one other all-time excessive within the US session in a single day. Chinese language equities have been constructive on the day, whereas Hong Kong and Japanese indices have been within the pink.

US Treasuries maintained the upper yields seen within the North American session, with the 10-year buying and selling close to 1.55%. Australian authorities bonds additionally noticed greater charges with their 10-year yielding 1.63% after buying and selling at 1.54% yesterday

The impacts of the unfold of the Omicron variant of Covid-19 continues with a 3rd day of over 1 million instances being reported globally. 1.61 million new instances have been reported yesterday around the globe.

Developing, US President Joe Biden is anticipated to speak with Russian President Vladimir Putin on Thursday as issues stay over the build-up of Russian army capabilities close to the Ukraine border.

Knowledge clever, the US will see manufacturing PMI and development spending numbers later in the present day.

AUD/USD TECHNICAL ANALYSIS

The Australian Greenback stays in an ascending development channel after making a brand new for 2021 at 0.69932 earlier this month. This was simply above the November 2020 low of 0.69913.

These 2 ranges and the pivot level and up to date low at 0.70903 and 0.70825 respectively, could present help.

The brief time period simple moving averages (SMA) of 10,14 and 21-days lie under the value and have constructive gradients. This might counsel that there’s brief time period bullish momentum evolving.

Nonetheless, the medium and long run SMAs, represented by the 55 and 200-day SMAs, are above the value with detrimental gradients. This may point out that the underlying medium and long-term bearish momentum stays intact.

A break under the brief time period SMAs might even see the ascending development channel damaged. A transfer above the medium and long run SMAs may see the continuation of the development.

Resistance on the highest aspect is perhaps on the earlier highs of 0.72726, 0.73680 and 0.75560

AUD/USD CHART

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter





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