Market news
10.02.2023, 06:21

AUD/USD pares intraday losses near 0.6930 as markets await US inflation precursors

  • AUD/USD picks up bids to rebound from intraday low amid sluggish markets.
  • Traders pare recent losses amid market’s cautious mood ahead of the key US data.
  • RBA SoMP, China inflation numbers failed to impress AUD/USD traders.
  • Mixed plays of recession and central bank talks offer inactive session ahead of US consumer-centric data.

AUD/USD consolidates daily losses around 0.6930, bouncing off the intraday low amid early Friday morning in Europe. In doing so, the quote traders lick their wounds amid cautious sentiment ahead of the key US data, as well as amid indecision due to the mixed catalysts.

That said, the quarterly prints of the Reserve Bank of Australia’s (RBA) Statement of Monetary Policy (SoMP) failed to impress the AUD/USD buyers despite posting hawkish economic forecasts and readiness for further interest rate hike. The reason could be linked to the statement saying, “The board is mindful of the rise in interest rates already made and that the policy acts with a lag.”

Also read: RBA hawkish-sounding quarterly Statement on Monetary Policy does little for AUD

Following that, China's Consumer Price Index (CPI) eased to 2.1% YoY versus 2.2% market forecasts, compared to 1.8% prior, while the Producer Price Index (PPI) dropped heavily to -0.8% YoY from -0.7% previous readings and -0.5% consensus. 

Also read: China Consumer Price Index a touch lower than estimates, AUD eyed for reaction

It should be noted that the looming fears of the US recession, as favored the US Treasury bond yields’ inversion, underpin the bearish bias surrounding the AUD/USD pair. However, the previous day’s downbeat US Jobless Claims join the Federal Reserve (Fed) officials’ hesitance in praising higher rate to weigh on the US Dollar and put a floor under the price.

Against this backdrop, S&P 500 Futures print mild losses while the stocks in the Asia-Pacific region remain pressured. However, the retreat in the US Treasury bond yields appears to keep the bears at bay.

Moving on, early signals for the next week’s US inflation data, namely preliminary readings of the US Michigan Consumer Sentiment Index and 5-year Consumer Inflation Expectations for February, will be crucial for the AUD/USD pair traders to watch for clear directions. Considering the upbeat expectations from the scheduled data, as well as the recession woes, the major currency pair is likely to witness further downside.

Technical analysis

Unless breaking the 50-DMA support surrounding 0.6870, the AUD/USD price remains on the bull’s radar targeting the 21-DMA hurdle, around the 0.7000 round figure.

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location