AUD/USD pushes higher with strong momentum

The pair is accelerating past September highs.

Charts (6)

The US Dollar was bearish against most of its major pairs on Thursday with the exception of the GBP. On the US economic data front, Initial Jobless Claims jumped to 853K for the week ending December 5th (725K expected), from a revised 716K in the week before. Continuing Claims unexpectedly rose to 5,757K for the week ending November 28th (5,210K expected), from a revised 5,527K in the prior week. The Consumer Price Index increased 0.2% on month in November (+0.1% expected), from unchanged in October. Finally, the Monthly Budget Deficit contracted to 145.3 billion dollars on month in November (198.5 billion dollars expected), from 284.1 billion dollars in October.

On Friday, the Producer Price Index Final Demand for November is expected to rise 0.1% on month, compared to +0.3% in October. Finally, the University of Michigan's Consumer Sentiment Index for the December preliminary reading is expected to slip to 76.0 on month, from 76.9 in the November final reading.      

The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CAD. In Europe, the European Central Bank has kept its key rates unchanged and has decided to boost PEPP (Pandemic Emergency Purchase Program) by 500 billion euros to at least March 2022. Separately, the UK Office for National Statistics has reported October GDP at +0.4% on month (vs flat expected), industrial production at +1.3% (vs +0.3% on month expected) and trade balance at 1.738 billion pounds deficit (vs 156 million pounds deficit expected). Furthermore, France's INSEE has posted October industrial production at +1.6% (vs +0.4% on month expected).

The Australian dollar was bullish against all of its major pairs. 

The AUD/USD broke above our first target of 0.75 in Thursday's trading breaking September highs. The pair gained an impressive 91 pips making it the top major pair of the day in terms of performance. Price action is currently above the upper Bollinger band indicating bullish momentum. We have raised our stop-loss to match the 20-day moving average at 0.738 with new targets of 0.765 and 0.777 in extension



Source: GAIN Capital, TradingView

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.