AUDUSD Australian economy is recovering steadily – 10 February 2022
AUDUSD Australian economy is recovering steadily
AUDUSD Australian economy is recovering steadily. The Australian currency demonstrates relative stability against the background of the neutrality of the US dollar, currently forming a local uptrend and trading around 0.7172.
Macroeconomic statistics coming from Australia indicate that the country’s economy continues to recover from the effects of the coronavirus pandemic confidently. According to the largest bank in the country, Westpac Banking Corporation, the consumer sentiment index for February may correct too –1.3% from –2.0%, and the expected inflation, according to the forecasts of the University of Melbourne, will rise to 4.6% from 4.4% month previously. Meanwhile, the index of building permits issued for January added 8.2%, which coincided with preliminary market estimates and exceeded the December increase of 2.6%. Thus, the probability that the Australian dollar will end the trading week with positive dynamics is quite high.
The situation in the currency pair may seriously change today after the publication of inflation data in the US. Investors are closely watching the dynamics of consumer prices in light of the possible start of a cycle of interest rate hikes by the US Federal Reserve in March this year. According to analysts, the figure will rise to 7.3%, surpassing the December value of 7.0%. If the forecast is implemented, the probability of a rate increase will increase significantly, locally supporting the US dollar, which has been trading almost neutral since Monday.
Support and resistance
On the global chart, the price moves within a long downtrend. Technical indicators are in the state of a sell signal, which is already ready to change to an upward one: the EMA fluctuation range on the Alligator indicator is actively narrowing, and the AO histogram forms upward bars in the sell zone.
Resistance levels: 0.7227, 0.7415.
Support levels: 0.7100, 0.6980.
