On a sluggish US Dollar Index, American PMI, with FOMC Minutes, the AUD advances over a significant milestone.

AUD Key Highlights

As speculators flocked to the US the US dollar, the AUD encountered difficulties.

The RBA’s decisions to tighten its policy will be heavily influenced by Australian data on the economy.

Internally Central Bank papers emphasized local tourism including the expense of dwelling.

The Chinese spokesman is urging Taiwanese voters to make the “proper decision” in the elections for president and legislature on January 13th.

Markets rethink the probability of a US Fed rate drop in the Q1 of the year 2024.

The AUD is struggling to hold over a key value of 0.6750 on the third day. Despite a weak US currency. After forecasts of weak world growth at the end of 2024. The AUD is under stress, pushing traders to return to the Greenback. Nevertheless, traders are rethinking their strong wagers on the US Federal Reserve cutting interest rates in the near future. Yet a healthy surprise on Chinese manufacturing figures might have curbed the AUD currency falls.

Australian’s economic statistics will prove crucial, particularly with the of Australia’s (RBA).  Stressing the need of examining further information to determine risk balancing prior to deciding monetary policy choices. The Judo Bank Manufacturers PMI, which was released yesterday suggested a slowing in economic growth. The impending publication of Composites and Service PMI readings on Friday is expected to dip under the 50-point mark. Implying a possible decline in both areas.

The AUD may show resiliency as a result of constant inflation and rising property values. Forecasts from the market point to the central bank’s abstaining from hardening its monetary policy at its forthcoming Feb gathering. That might add to currency AUD’s steadiness.

Considering Chairman Powell’s comments of prospective rate decreases.  Following the months to come of the current Federal Reserve’s fiscal policy ruling, the FOMC minutes may be relevant.

Technical Analysis and Perspective

On the third day the Australian Currency is trading at 0.6760. After the significant milestone at 0.6850 mark. Its psychological area at 0.6800 might function as a critical barrier. On the negative side, the AUDUSD duo could encounter critical support around the 0.6750 key stage.  Following by the 21 D-EMA around 0.6733 level & the 23.6 percent Fibonacci regression mark at 0.6725. A break beneath the former could place the AUDUSD unit at risk of failing.  As it crosses the psychological assistance mark at 0.6700, that follows the 38.2 percent Fibo retrace mark at 0.6637 area.

5- Hourly Technical Indicators