AUD/USD showed has started the week with a whimper, as the pair continues to drift. In Monday’s European session, the pair is trading at 0.7275, down 0.13% on the day.
RBA minutes eyed
On Tuesday, investors will be combing through the RBA minutes, which will provide details of the RBA policy meeting earlier this month. At the meeting, policymakers maintained the Cash Rate at 0.25%, where it has been pegged since March. In a statement after the meeting, RBA Governor Lowe said “the downturn is not as severe as earlier expected and a recovery is now under way in most of Australia”. If the minutes reiterate this bullish stance, the Aussie could gain ground.
Australia’s economy has been hit hard by the Covid-19 pandemic. In the second quarter, GDP contracted by 7.0%, making it the worst quarter on record. Despite this, it has been all roses for the Australian dollar, which has soared despite the pandemic, gaining 18.7% since April 1. However, the US dollar has finally shown some improvement, as AUD/USD is down 1.4% in the month of September.
Much of the impressive rise of the Aussie is due to an improving Chinese economy. China was hit by Covid-19 months before the rest of the world, and the country appears to have rebounded earlier than other countries. China’s PMIs continue to point to expansion in the services and manufacturing sectors. The Aussie is sensitive to Chinese data, as China is Australia’s number one partner. On Tuesday, China releases Industrial Production, which is projected to improve to 5.1%, after two straight readings at 4.8%.
- There is resistance at 0.7308. This is followed by resistance at 0.7333
- 0.7255 is a weak line of support. Below, there is support at 0.7227
- AUD/USD continues to put downward pressure on the 20-day MA. If the pair breaks below this line, it would indicate a downtrend for the pair
Seeing the Student Loan Crisis as a Form of Boom and Bust
In a market economy, prices are determined by supply and demand: how much of a quantity is being offered and how much value people place on that good relative…
Interest Rate Hike Hurts Homebuilders
Well, folks, the talk of the week has certainly been about the Federal Open Market Committee (FOMC) meeting this past Wednesday.
As we talked about on…
US Marine: “I Didn’t Join The Military To Fight For Taiwan”
US Marine: "I Didn’t Join The Military To Fight For Taiwan"
Authored by 13-year military veteran Dan McKnight,
Are you ready to go to war…
Richard Mills – Riding Out a Recession by Trading Commodities
Is the Bitcoin Price Being Suppressed by Paper Trading Like Gold?
Less Than Half Of Manhattanites Are Back In The Office Despite ‘Pandemic Being Over’
The Fed Is Wrong Again: Core Inflation Rapidly Rolling Over And Will Drop To 3% By Q1
Stocks, Bonds, Bullion, & Bitcoin Dump; USD Jumps As Fed Looms
NATO Says China’s Role In Ukraine War A “Challenge” To The Alliance
Macro Briefing: 20 September 2022
The Case for Gold in 2022
‘The Dollar Is Once Again The World’s Problem’ – Chinese State Media Urges ‘De-Dollarization’ Amid Fed’s “Financial Looting”
SPAC ‘King’ Chamath Palihapitiya Is Shuttering Two Funds
Precious Metals21 hours ago
This “Big Money Illusion” Makes a Bad Risk Even Worse
Economics22 hours ago
Brexit might not have been such a bad idea after all — EU insanity
Precious Metals24 hours ago
False Gold-Stock Panic
Uncategorized24 hours ago
Even A Weaponized Dollar Won’t Stop Gold’s Historical Turning Point
Uncategorized21 hours ago
The Lithium Rush: Prices Soar As Electric Vehicle Demand Rises
Economics24 hours ago
7 Tech Stocks to Buy During a Stock Market Crash
Economics21 hours ago
Stocks Tumble To Session Lows The Moment Powell Opens His Mouth At Today’s Fed LIstens Event
Economics21 hours ago
Turkey’s Central Bank Slashes Interest Rates AGAIN as Inflation Soars Above 80%