Australian Dollar, AUD / USD, Q2 Business Inventory, Covid – Call Points
- Risk sensitive Australian dollar unchanged as APAC trading begins
- Australia will report second-quarter corporate inventories and corporate earnings
- AUD / USD For 26-day EMA resistance after a large increase last week
Monday ‘s outlook for Asia – Pacific
The risk-sensitive Australian dollar is higher than the US dollar US dollar when Monday’s Asia-Pacific session begins. Greenback is unchanged for most peers. APAC traders can digest Fed chairman Jerome Powell’s comments from Friday’s Jackson Hole economic symposium. Mr Powell’s message hinted that he was narrowing QE property purchases will probably start this year, but failed to provide a clear timetable. In September FOMC the meeting is likely to convey this message.
Government bond yields fell on Friday, but remained higher during the week, perhaps reflecting the economic outlook. Wall Street shares also closed higher at the end of the week, protective shares rose. The head of the Federal Reserve noted that the US has made significant progress in achieving its dual mandate with its inflation target. already tabas. However, Mr Powell made it clear that interest rate increases must meet higher standards of economic progress. This is likely to boost equities.
Australia is ready to report second quarter business inventories and the company’s gross profit today. According to a Bloomberg study, analysts expect business inventories to exceed 1.3% and the company’s gross profit to 3.0%. The Australian dollar is likely to be headwind if need the data prints the impact predictions. Economic data results has deteriorated for the Australian economy in recent weeks, highlighting the cost of ongoing closures, many of which were put in place this summer. Retail sales fell 2.7% in July.
New South Wales (NSW) is the worst affected state in Australia and continues to report cases of concern. The state, including Sydney, reported 1218 new local cases on Sunday. Australian treasurer Josh Frydenberg has warned that the pandemic will cost jobs and close businesses if national borders remain closed in Australia, suggesting that state prime ministers are sticking to the national plan. This plan agrees to abandon large-scale closures when Australia reaches a vaccination rate of 70-80%.
Today’s economic situation is rather mild outside Australia, with Japanese retail sales and Thai industrial production data being the only events. APAC traders are reviewing PMI data from China on Wednesday, analysts expect the plant’s gauge to slow. The US Non-Agricultural Payroll Report is the highlight of this week. The work report will go over the wires on Friday.
AUD / USD technical outlook:
AUD /USD see little movement at the beginning of the week after a big move of + 2.51% last week. Given last week’s pick-up, prices could overdo it. It could open the door this week. The Relative Strength Index (RSI) is greater than 70 over periods of 1.2 and 4 hours. An RSI shown above 70 indicates overbought conditions.
Moreover, the 26-day exponential decline in the moving average (EMA) appears to be increasing. Prices could not exceed EMA in August. However, as the rise increases, the focus is on the declining trend line. Alternatively, the negative step could be to see that prices find support at 61.8% fib retracement.
AUD / USD four hour chart
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 below, or @FxWestwaterTwitter