AUD Key Points and considerations

In the most optimistic scenario, GBPAUD may touch 1.9285.

The AUDUSD is expected to increase further during the week.

The week’s attention is on monthly Australian inflation.

China’s PMIs are going to be significant

AUD Verses GBP

In the short term, the AUD could stay positively placed versus many its other peers. Possibly bolstered by reports from China and Australia this week. The Aussie has benefited from stronger worldwide market optimism, that has bolstered markets for stocks including cyclical in nature assets similar to the AUD.

While G10 inflation has continued to fall in the last few weeks. The market’s hopes of a softer monetary authority pivot have grown, resulting in a softening of the world’s financial markets.  Which has boosted risky market appetite. As a result, G10 risk-specific assets outperformed safer haven currency such as the U.S. dollar, the yen, and Swiss Franc.

Due to these worldwide factors, in addition to some improving local statistics. The UK currency has outperformed, left the GBP to Aussie exchange rate maintaining an exact path that may be anticipated to remain in place.

This line in daily charting represents the 23.6 percent Fibonacci retraced movement of the Aug to Oct dip.  It can be observed the line has proven to have become more akin to a pivot for the currency rate since Sept.

Further rises in the next days, ought to be muted by investors into 1.9285 mark. that constitutes the 38.1 percent Fibonacci level and has been a source of barrier from Sept. As a result, this is our immediate upward goal for this duo. We are doubtful to witness pyrotechnics for GBPAUD in the upcoming moments. considering the recent surpass on both Pound & the AUD. However, spreads in yields seem to support more fall, according to our sources.

AUDUSD Scenario

The Australian dollar retains a rising trend versus the US dollar, which Commonwealth Bank’s analysts anticipate to continue.

During the past week, the AUDUSD broke through the 0.6600 barrier. The weaker the United States dollar is going to keep AUD/USD sustained during the week.

We believe that the AUDUSD pair will not rise beyond 0.6714 mark- (50 percent fib) for the immediate term. Although, an inevitable unwinding of investors’ short positioning may offer major stability. This week marks the publication of a slew of statistics on the Australian economy. That may influence trader’s projections for future rate rises by the RBA

Australia’s retail sales data will be released at 00:30 GMT on Tues. And consumers expecting a 0.3 percent term-on-quarter increase for the Q3.

According to Crédit Agricole, the information disclosures ought to back pricing in the market. Which is now towards the prospect of a further RBA rate rise. Many believe that the Reserve Bank of Australia will hold out for quarter inflation statistics around late Jan. Considering the robustness of sales for Christmas prior to determining if to boost rates anew.

This is additionally worthwhile keeping an eye on Beijing this week. Since the Aussie often works as an imitation to Beijing. The initial release is China’s formal PMI data, which is coming on Thursday afternoon, and investors expecting a figure near 49.6 value.

Daily Support and Resistance Levels

S3 0.62698 S2 0.62698 S1 0.63141       R1 0.66076 R2 0.66076 R3 0.68995

Indicators