Australian Dollar, AUD / USD, Fed, Covid, NSW, Bank of Korea – call points
- Covid cases in Australia continue to be higher in NSW
- The Bank of Korea (BoK) announces the interest rate decision
- AUD / USD approaches resistance after several days of price increases
Thursday ‘s Asia – Pacific Outlook
The Asia-Pacific markets appear to be on track to prolong the increase in risk observed at the beginning of the week. Shares boosted profits over time Wall StreetWednesday session, benchmark S&P 500 the index rose 0.22%. Anti-risk US dollar softened according to stock market risk-taking. Meanwhile, sentiment-sensitive Australian dollar compared to most similar currencies.
The Jackson Hole Federal Policy Symposium begins tomorrow. Fed chairman Jerome Powell will speak on Friday. Some expect the head of the Federation to send a signal about the purchase of assets, while others expect this message to come next month. FOMC meeting. Nevertheless, traders focus on the event in view of the market-moving potential.
While the Australian dollar is benefiting from market sentiment, the ongoing viral situation in Australia is a flashing warning that good times may not last. Covid cases set a new daily record on Wednesday. New South Wales (NSW) has discovered 919 new infections, according to the latest government data. This will strain the capacity of hospitals in the Greater Sydney area, which calls on policymakers to increase vaccination activity.
Today’s economic calendar points to the key market event for the South Korean interest rate decision. Analysts expect the Bank of Korea to raise its key interest rate by 25 basis points from 0.50% to 0.75%, according to a Bloomberg study. This would mark the first rise in interest rates from a major central bank in the Asia-Pacific region. Given the increase in the number of Covid cases observed in the country, keeping the policy at this meeting would not be so surprising.
AUD / USD technical outlook:
The Australian dollar is approaching technical hurdles that could curb recent gains against the US dollar. AUD /USD is approaching its lowest level in July, 0.7289, which provided the basis for the level of support for Rising Wedge. A 20-day decline in moving average (SMA) may also put pressure slightly above this level. However, the MACD oscillator indicates a possible increase in momentum after crossing the MACD line above the signal line.
AUD / USD daily schedule
The chart has been created TradingView
Australian dollar trading resources
– Written by Thomas Westwater, DailyFX.com analyst
Be in touch Thomas, use the comments section or below @FxWestwaterTwitter