AUDUSD is Weaker Ahead of Business and Inflation Data

The AUDUSD exchange rate will be in focus this week with Australian business data and US inflation.

AUDUSD – Daily Chart

AUDUSD – Daily Chart 

The price of the AUDUSD has surrendered the key resistance at 0.6870. The price has now moved lower through 0.6798. The next target on the downside is at 0.6620.

The data starts on Tuesday at 8:30 HKT with NAB business confidence data and ANZ-Indeed Job figures. Economists expect job adverts to increase by 0.4% in September, following a 2.1% slide in August.

Labour market conditions are an important indicator for the Reserve Bank of Australia. Higher-than-expected job opportunities could signal a pickup in job creation and wages. Higher wages would also boost consumer spending and demand-driven inflation, possibly delaying an RBA rate cut until 2025.

Economists expect the NAB Business Confidence Index to increase from -4 in August to +2 in September. Improving confidence at businesses may suggest increasing investment and job creation.

Further data on Wednesday will be the Westpac Consumer Confidence Index. Economists predict the Index will increase by 0.8% in October after a 0.5% drop in September. Improvement in consumer spending trends could boost the Aussie economy as private consumption accounts for more than 50% of GDP. Furthermore, consumer confidence is a leading indicator of inflation where economists continue to see stubborn pricing trends with inflation expectations of 4.3% in October, down from 4.4% in September.

Investors are currently trying to work out the chances for a Q4 2024 RBA rate cut. Analysts are also worried about the Middle East conflict which could affect the Aussie economy.

“For the conflict to have a material and long-lasting impact on the market, this needs to become a broader war with a significant impact on the global economy through constrained oil supply or rising shipping costs, for example, which could up-end the current expectations for a rapid rate cutting cycle,” said Ballinger Group analyst Kyle Chapman.

The US dollar has been strengthening as its own jobs market fares well but there is also the potential for safe haven demand in the US dollar as markets await action from Israel against Iran which risks sparking a wider conflict.

Recent News
Start Trading Now!

Try our demo account for free to learn trading. When you’re ready, switch to the live account and start trading for real.

Popular posts

ATFX

The Firm has taken the decision to cease providing services to retail clients, with immediate effect. We are therefore unable to accept any applications.

Services to professional clients will not be impacted. For professional applications please contact [email protected]

ATFX

Restrictions on Use

Products and Services on this website https://www.atfx.com/en-ae/ are not suitable
in your country. Such information and materials should not be regarded as or
constitute a distribution, an offer, or a solicitation to buy or sell any investments.
Please visit https://www.atfx.com/en/ to proceed.

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/en/

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/