Created
: 2024.10.19
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Australian Dollar rises as weak USD and strong data support Aussie
World FX news
Breaking news
Australian Dollar rises as weak USD and strong data support Aussie
New
2024.10.19 05:00
2024.10.19 05:00
2024.10.19 05:00
- The Aussie Dollar benefits from a weaker US Dollar and strong employment data.
- China's economic slowdown weighs on risk sentiment and limits AUD gains.
- Soft housing data also weighed on the USD on Friday.
The AUD/USD pair extended its recovery momentum on Friday and rose mildly to 0.67055, with a positive risk tone and hawkish Reserve Bank of Australia (RBA) expectations due to strong local data underpinning the Aussie. A consolidating US Dollar also helped the pair to rise.
Due to strong employment data release this week, markets might start betting on a more hawkish RBA. As for now, the consensus indicated a single 25 bps cut in 2024.
Daily digest market movers: Australian Dollar rises amid risk-on tone and hawkish RBA expectations
- AUD strengthens due to positive domestic employment data, diminishing expectations for RBA rate cuts.
- Risk-on sentiment in global equity markets undermines USD safe-haven demand.
- This week, employment increased by 64.1K, showing slightly higher growth than the strong results seen in August with most gains in full-time jobs.
- The unemployment rate was adjusted downward to 4.1%, staying close to historic lows and significantly below the decade's average.
- In the meantime, investors continue to place bets on a 25 bps cut by the RBA by years-nd. However, if data continue to come in strong, those odds might fade.
AUD/USD technical outlook: Pair recovers, might have hit bottom
The Relative Strength Index (RSI) has recently risen upwards in the negative area, suggesting that buying pressure is recovering. Meanwhile, the Moving Average Convergence Divergence (MACD) is flat, implying that selling pressure is currently flat. Overall, the AUD/USD pair is technically mixed but with signs of a recovery.
For the next session, the buyer's task is to defend the 0.6700 area and build support around it.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2024.10.19
Related articles
GBPUSD extends meager recovery from 1.30
27 minutes agoUSD/JPY Price Forecast: Retreats below 150.00 sponsored on falling yields
30 minutes agoNZD/JPY Price Analysis: Buyers lose momentum, eyes on SMA crossover
33 minutes agoAustralian Dollar rises as weak USD and strong data support Aussie
2024.10.19 04:59Mexican Peso erases earlier gains amid a weak US Dollar
2024.10.19 03:06US Dollar declines as market awaits Fed signals
2024.10.19 03:05
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
GBPUSD extends meager recovery from 1.30
GBP/USD extended a near-term recovery rally to wrap up the trading week, inching back in a familiar congestion zone and clawing back meager gains from the midweek's backslide into the 1.3000 handle.
New
2024.10.19 06:55USD/JPY Price Forecast: Retreats below 150.00 sponsored on falling yields
The USD/JPY retreats after hitting a two-month high of 150.32, edges down over 0.45%, and trades at 149.55 at the time of writing.
New
2024.10.19 06:52NZD/JPY Price Analysis: Buyers lose momentum, eyes on SMA crossover
In Friday's session, the NZD/JPY pair declined by 0.20% to 90.80, encountering increased resistance and losing ground still holding the key 20-day Simple Moving Average (SMA).
New
2024.10.19 06:49Australian Dollar rises as weak USD and strong data support Aussie
The AUD/USD pair extended its recovery momentum on Friday and rose mildly to 0.67055, with a positive risk tone and hawkish Reserve Bank of Australia (RBA) expectations due to strong local data underpinning the Aussie.
New
2024.10.19 04:59Gold soars to record high above $2,700 on geopolitical tensions
Gold prices continued to print record highs after breaching the $2,700 figure amid uncertainty surrounding the US election and tensions in the Middle East.
New
2024.10.19 04:13Dow Jones Industrial Average trudges higher on Friday
The Dow Jones Industrial Average (DJIA) tested cautiously into higher ground on Friday, clipping into another record high and keeping the needle pinned firmly into the bullish side.
New
2024.10.19 03:19Mexican Peso erases earlier gains amid a weak US Dollar
The Mexican Peso remained firm against the US Dollar on Friday yet erased earlier gains, which saw the emerging market currency appreciate over 0.90%.
New
2024.10.19 03:06US Dollar declines as market awaits Fed signals
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, is declining on Friday as profit-taking sets in following a strong rally earlier in the month.
New
2024.10.19 03:05USD/JPY Price Forecast: Bearish Rising Wedge pattern radically alters chart
USD/JPY keeps rising and forming a Rising Wedge pattern as it closes in on an old major trendline.
New
2024.10.19 02:19OPEC remains much more optimistic about oil demand than IEA - Commerzbank
Both OPEC and the IEA revised their oil demand forecasts downwards again this week, Commerzbank commodity analyst Carsten Fritsch notes.
New
2024.10.19 01:41Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
