Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Aussie Storms Past 70 Line

By MarketPulse (Kenny Fisher)ForexMay 17, 2022 07:52AM ET
www.investing.com/analysis/aussie-storms-past-70-line-200624386
Aussie Storms Past 70 Line
By MarketPulse (Kenny Fisher)   |  May 17, 2022 07:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Australian dollar extended its gains on Tuesday. In the European session, AUD/USD was trading at 0.7034, up 0.93% on the day.

Australian dollar recovers

After falling to a June 2020 low late last week, the Australian dollar stormed back with a gain of 230 points since Thursday. The Aussie benefited from weak US numbers as well as the RBA minutes.

Yesterday, the Empire State Manufacturing Index plunged to -11.6, down from 24.6 and below the forecast of 17.0 points.

US consumer confidence numbers on Friday were a disappointment. UoM Consumer Sentiment dropped to 59.2, down from 65.0 and shy of the estimate of 64.0 points.

The index fell to its lowest level since October 2011. Just one year ago, the index was at a lofty 82.8, indicative of a massive erosion in the confidence levels of the US consumer.

Consumers have become pessimistic about current and future expectations, and inflation expectations remained at 5.4% for a third straight month, a 40-year high. If the deterioration in consumer confidence spills over to consumer spending, economic activity will weaken.

The RBA minutes of the May meeting were significant, as they highlighted the discussions ahead of the RBA’s decision to hike rates by 0.25%. RBA Governor Lowe called the move a return to “business as usual,” but it turns out that policy makers considered a supersize 40-bps increase, given the “upside risks to inflation and the current very low level of interest rates,” according to the minutes.

In the end, the RBA went with the more moderate 0.25% increase, but the fact that a 40-bps move was discussed means that it is still on the table, even if it is not the likeliest move at the June meeting.

Still, the odds of a 40-bps move will certainly increase if either today’s wage price index or Wednesday’s employment report are stronger than expected.

If the data is stronger than expected, I would expect the Australian dollar to gain ground.

AUD/USD Daily Chart
AUD/USD Daily Chart

AUD/USD Technical

  • 0.7064 is under pressure in support. Above, there is resistance at 0.7189
  • There is support at 0.6946 and 0.6821

Original Post

Aussie Storms Past 70 Line
 

Related Articles

Kenny Fisher
Euro Slides As Inflation Jumps By Kenny Fisher - Jul 01, 2022

The EUR/USD is sharply lower on Friday and is currently trading just above the 1.04 line, down 0.76%. Eurozone inflation outperforms Eurozone CPI for June was higher than...

Aussie Storms Past 70 Line

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email