- The Aud/USD pair quotes at 0.6400, rising more than 0.50% on Thursday.
- The US president Donald Trump confirmed a commercial meeting with China, but no important agreements were reached.
- Durable goods orders increased 9.2% in March, exceeding expectations. Unemployment subsidy requests increased slightly to 222k.
The Aud/USD pair remains strong on Thursday while the US dollar (USD) is still weak. Despite some positive US economic data, including the orders of stronger durable goods than expected, uncertainty about commercial conversations between the US and China and the largest tariff situation continue to affect the feeling of the market. The movements of the torque reflect the broader uncertainty in global markets.
What moves the market today: US data are mixed in the midst of current commercial tensions
- In the US front, orders for lasting goods in March increased by 9.2%, exceeding market expectations of a 2%increase. Unemployment subsidy applications increased slightly, with 222K new applications for the week ending on April 19.
- Commercial tensions between the US and China continue to weigh on the feeling of the market, despite the conversations.
- The federal reserve position (FED) remains uncertain, with hopes of a change in the midst of concerns about ongoing inflation.
- The US economic growth forecasts by 2025/2026 have been reduced due to commercial uncertainties.
- Gold prices rise by 1%, supported by the lowest yields of the US Treasury bonds and a cautious perspective for the USD.
- US actions show mixed reactions to economic data, with some optimism but also resistance near historical maximums.
- Investors are weighing the potential of a decala in the commercial war between the US and China.
- Uncertainty around inflation and possible rates cuts by Fed continue to influence market movements.
- The US dollar is still under pressure while geopolitical tensions and commercial risks dominate the holders.
Technical analysis: Aud/USD shows bullish bias, resistance ahead
The aud/USD torque is currently traded at 0.6400, rising 0.66% in the day. The price action is contained within the range of 0.6344 to 0.6409. The relative force index (RSI) is neutral in 58.62, while the MACD is generating a purchase signal. The raw material channel index (CCI) in 76.33 and the bull/bassist power at 0.0085 indicate neutral conditions. The short -term mobile socks, including the EMA of 10 days at 0.6348 and the 10 -day SMA at 0.6364, reinforce the upward perspective. However, the 200 -day SMA at 0.6470 has resistance. The key support levels are at 0.6385, 0.6364 and 0.6348, while the resistance is found at 0.6412 and 0.6470. The pair is prepared for greater rise, but resistance levels remain a critical factor to monitor.
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 AUD, 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.
