- The Aud/USD pair quotes at 0.6400, with an increase of more than 0.40% in the day.
- The president of the USA, Trump, confirmed commercial conversations with China, but a significant progress was not achieved.
- Investors expect the upcoming non -agricultural payroll data (NFP) and US GDP, crucial for the Federal Reserve perspective.
- The US dollar is still under pressure, waiting for more economic clarity of this week’s key data.
The Aud/USD torque is being stable stable around 0.6400 while investors are preparing for the key economic data in the United States (USA) this week. The approach is in non -agricultural payroll (NFP) and GDP figures, which will provide information on the strength of the US labor market and economic growth, which could influence the monetary policy decisions of the Federal Reserve (FED).
Daily summary of market movements: US data in the focus while commercial tensions persist
- The president of the USA, Trump, confirmed commercial conversations with China, but no progress was achieved.
- Investors are focused on the upcoming non -agricultural payroll data (NFP) and US GDP, which will provide crucial information.
- The US dollar index (DXY) remains about 99.60 while market participants expect more economic signals.
- The market is cautious since US commercial policies continue to create uncertainty for the global economy.
- The next federal reserve policy decisions depend on key economic data, including the PCE, NFP and GDP.
- In Australia, investors await CPI data, with a possible slowdown in inflationary pressures that will influence the next RBA movement.
- Uncertainty about commercial relations between the US and China continues to affect the feeling of the global market and the Australian dollar.
- The recent recovery of the US dollar could face challenges depending on the result of the next economic reports.
- A weaker NFP or GDP report could lead to renewed downward pressure on the US dollar.
- The market approach to the US economic data underlines the potential for significant movements in the market this week.
- Commercial tensions with China remain a key source of uncertainty for both the US dollar and for global trade.
Technical analysis: Aud/USD resistance test, intact bullish impulse
The Aud/USD torque is currently being negotiated at 0.6400, with an increase of 0.41% in the day. The price action is contained within the range of 0.6368 and 0.6430. The relative force index (RSI) is neutral in 59.55, while the convergence/divergence indicator of mobile socks (MACD) is generating a purchase signal. The ultimate oscillator and the stochastic %K are both neutral, suggesting indecision in the impulse of the market. The short -term mobile socks support the upward perspective, with the 10 -day EMA in 0.6368 and the 10 -day SMA in 0.6384. However, the 200 -day SMA at 0.6466 presents resistance. Support levels are found at 0.6411, 0.6402 and 0.6384, while the resistance is at 0.6466. The torque is testing resistance and could break up if the upward feeling continues.
Faqs Australian dollar
One of the most important factors for the Australian dollar (Aud) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AU, with the opposite effect if the commercial balance is negative.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
