On Monday, the Australian dollar dipped a little against the greenback.
As of right now, the AUD/USD currency pair is trading at 0.7413, down by -0.02% today.
This was the strongest week for the Australian dollar since early September, with a 1.57 percent gain.
Australian, New Zealand and Canadian currencies have all seen significant gains versus the US dollar in recent trading. This suggests that risk sentiment is still high in the currency markets.
While there were some disappointing domestic data releases last week, the Australian dollar showed some strength.
In October, consumer confidence dipped by 1.5%, while employment data revealed a double-digit drop in employment for the second month in a row.
As the week came to a close, the US reported a 0.7% increase in retail sales.
This suggests that consumer spending is picking up after a weak third quarter, giving rise to optimism that the US economy is on the mend following the recent slowdown caused by the Delta variant. –
The minutes of the RBA’s October policy meeting will be made public on Tuesday.
As a result, the rate announcement from that meeting had minimal impact on the Australian currency.
In the RBA’s October rate announcement, Governor Philip Lowe noted that the Delta epidemic had harmed the recovery and that GDP was projected to have “materially fallen” in the third quarter.
If these remarks are repeated in the minutes, the outlook for the Australian currency may deteriorate.
As Lowe pointed out, inflation has remained below the RBA’s objective of 2.0 percent, indicating that, unlike the Fed and the BoE, the RBA is not feeling any need to raise interest rates in order to combat the current spike in price levels.
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AUD/USD
Technical
The level of 0.7476 has proven to be a point of resistance.
The 0.7532 level serves as resistance above.
The 0.7328 price level is acting as a support for the pair.
The 0.7236 level serves as support below.
This is a non-commercial, non-commercial article.
This is not a recommendation to purchase or sell securities, nor is it investment advice.
OANDA Corporation, its affiliates, subsidiaries, officers, and directors do not necessarily endorse the views expressed.
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