AUDUSD trades 0.13% lower at 0.6814 despite stronger Business Conditions data. The Australia Bank’s Business Conditions came in at 4 topping estimates of 2 in November, while the Business Confidence came in at 0 in line with expectations. The House Price Index (quarter over a quarter) came in at 2.4%, topping analyst’s forecasts of 0.2% in the third quarter.
Aussie got a hand from better China’s inflation figures. China’s November month Consumer Price Index came in at 4.2% below the forecast of 4.5% while monthly data came in at 0.1% below market estimates of 0.4%. Last Friday, the Australia Retail Sales disappointed analysts as it came in at 0%, below forecasts of 0.3% in October. The Australia Trade Balance registered at 4502M, below estimates of 6100M in October.
Moody’s credit rating in a report last week reduced Australian growth forecast to 2.2% and the unemployment rate to 5% for 2020. RBA has already cut rates three times and sounded cautiously optimistic in its last meeting, pointed out that a turning point appears to have been reached.
AUDUSD continues the correction from three-week highs at 0.6861 after the pair failed in early November to make fresh three-month highs. Today the forex pair has stalled at the 50-day moving average, while next support stands at 0.6806 the 100-day moving average. If sellers managed to break below then a move down to 0.6761 the low from December 2nd.
On the downside, immediate resistance stands at 0.6836 today’s high and then at 0.6856 the high from December 6th. Bulls next target will be 0.6911 the 200-day moving average.
Investors await the Feds decision tomorrow that might provide a catalyst for the pairs next move.More content