AUD/USD is flirting with a short-term help zone forward of Australia’s retail gross sales report!
Can the Aussie see sufficient bullish strain to revisit larger areas of curiosity after a technical help bounce?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out USD/JPY’s triangle consolidation forward of the U.S. core sturdy items orders. Ensure to take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Knowledge:
U.S. Sturdy Items Orders for February: 1.4% m/m (0.7% m/m forecast; -6.9% m/m earlier); Core orders got here in at 2.2% m/m (2.4% m/m forecast; -7.9% m/m earlier)
FHFA Housing Value Index for January: -0.1% m/m (0.1% m/m forecast/earlier); up 6.3% y/y vs. 6.7% forecast/earlier
Richmond Fed Manufacturing Index for March: -11 (-4 forecast; -5 earlier); Employment subindex fell to 0 from 7
CB U.S. Client Confidence for March: 104.7 (106.5 forecast; 104.8 earlier)
Australia’s Westpac-Melbourne Institute Main Index, which measures financial exercise relative to pattern three to 9 months into the long run, grew by 0.1% in February after a 0.1% dip in January
Australia’s CPI remained unchanged at 3.4% y/y for a 3rd consecutive month in February (vs. 3.5% forecast) as cheaper meat and seafood helped offset will increase in lease and gas costs
China’s industrial income jumped 10.2% in January and February from the identical interval final 12 months, following a 2.3% decline in 2023
Spain’s flash CPI accelerated from 2.8% y/y to three.2% y/y (vs. 3.1% y/y forecast) in February
Value Motion Information
Overlay of AUD vs. Main Currencies Chart by TradingView
Whereas the Swiss franc continued to see bearish strain through the Asian and early European session buying and selling, the Australian greenback additionally noticed elevated volatility in the previous few hours.
And why not? Australia’s annual CPI got here in at 3.4% y/y in February, which was a bit weaker than market estimates. Turned out, the financial impression of sold-out Taylor Swift exhibits in Sydney and Melbourne have been offset by weaker tourism elsewhere as the height journey season winds down.
AUD dropped throughout the board on the information but in addition erased most of its losses within the subsequent few hours. It may need helped that China’s industrial income registered at 25-month highs within the first two months of 2024. Sellers finally got here again at first of the European session and AUD is presently buying and selling close to its intraweek lows.
Upcoming Potential Catalysts on the Financial Calendar:
Switzerland’s Credit score Suisse financial expectations at 9:00 am GMT
BOE FPC assembly minutes at 10:30 am GMT
China’s CB main index at 1:00 pm GMT
U.S. crude oil inventories at 2:30 pm GMT
FOMC voting member Christopher Waller to offer a speech at 10:00 pm GMT
BOJ’s Opinions Abstract at 11:00 pm GMT
Australia’s MI inflation expectations at 12:00 am GMT (Mar 28)
NZ ANZ enterprise confidence at 12:00 am GMT (Mar 28)
Australia’s retail gross sales at 12:30 am GMT (Mar 28)
Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! ️
AUD/USD 15-min Foreign exchange Chart by TradingView
Comdoll merchants huddle up! AUD/USD is buying and selling a number of pips away from the S2 (.6510) Pivot Level help which occurs to line up with help ranges from a number of days in the past.
Voting FOMC member Christopher Waller will speak financial coverage later at the moment whereas Australia will print its February retail gross sales numbers.
Market themes that help risk-taking may push AUD/USD to earlier areas of curiosity like .6530 or .6550 whereas threat aversion performs could drag AUD/USD to a potential draw back breakout and new March lows.
What do you suppose? Will the help zone maintain for one more day or two?
