audusd hit a short term ceiling 1021412015
<p>AUDUSD recovered a lot of its lost ground overnight, following some substantial loses on the back of the PBoC’s decision to devalue the yuan. This […]</p>
Share this:
AUDUSD recovered a lot of its lost ground overnight, following some substantial loses on the back of the PBoC’s decision to devalue the yuan. This is raising concerns about the health of Australia’s largest trading partner. It also increases the threat of global deflation in consumer prices and commodity prices. Nonetheless, some wide US dollar weakness overnight helped AUDUSD regain some of these losses, with the pair now nudging resistance around 0.7400/15. NY Fed Chair Dudley expressed some fairly unenthusiastic comments about the prospect for tighter monetary policy in the US, which scared Fed hawks.
There’s not much happening in Australia for the remainder of the week, but there is some important US economic data which will be assessed as the market attempts to predict when the Fed will begin its tightening cycle.
1230GMT – US retails sales (July)
- The pace of growth at the growth level in the US is a very important gauge for the overall health of the economy. Surprisingly weak retail sales numbers in June (-0.3% m/m) caused some market participants to question the pace of economic growth in the US and the likelihood of interest rates rising in September. Retail sales are expected to rebound in July by an encouraging 0.5% m/m, which could keep hopes for a rate hike next month alive, while another weak month for retailers could erase these hopes completely.
0115GMT – US industrial production (July)
- Factory output has been restrained recently by soft capital spending, lacklustre global demand and a strong exchange rate. The market is expecting industrial production to advance in July by 0.3%, but this would represent only the second gain this year.
From technical perspective, AUDUSD looks a little trapped. There’s a lot of resistance between 0.7400 and 0.7450 and then again around 0.7500, and we don’t think it has the legs to climb that high in the near-term. On the downside we’re eyeing a stiff, but weakening, support zone around 0.7250.
Source: City Index
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.