Australian Dollar moves on a downward trajectory as US Dollar strengthens.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• Australian Dollar moves on a downward trajectory as US Dollar strengthens.
• Australian Consumer Confidence declined by 1.3% in January against the 2.7% prior.
• Fed Bostic warned that inflation may waver in the upcoming months.
• Upbeat US bond yields contributed support to underpinning the Greenback.

The Australian Dollar (AUD) continues its losing streak on Tuesday which began on January 9. The AUD/USD pair faces downward pressure after the Westpac Consumer Confidence data for January showed a contraction. This development might contribute to the sentiment that there will be no further policy tightening from the Reserve Bank of Australia (RBA) in its upcoming board meeting in February.

Australia’s Consumer Confidence, released by the Faculty of Economics and Commerce Melbourne Institute, declined by 1.3% compared to the previous increase of 2.7%. However, on Monday, the TD Securities Inflation data showed a rise in December, which might have limited the losses of the Aussie Dollar.

The US Dollar Index (DXY) began the Tuesday session with a gap-up, supported by upbeat US Treasury yields. Investors’ confidence in the US Dollar (USD) appears to be returning following hawkish remarks by Atlanta Federal Reserve (Fed) President Raphael Bostic over the weekend.

According to the Financial Times, President Bostic suggested that inflation could “see-saw” if policymakers cut interest rates too soon. He warned that the descent of inflation toward the central bank’s 2.0% goal was likely to slow in the months ahead.

Traders will likely keep an eye on the NY Empire State Manufacturing Index on Tuesday, with an expected decline to 5 compared to the previous reading of 14.5. Additionally, Chinese Gross Domestic Product (GDP) and Retail Sales data are scheduled for Wednesday.

The Australian Dollar trades near 0.6620 on Tuesday, positioned above psychological support at 0.6600 following the 50% retracement level at 0.6566 and major support at 0.6550. On the upside, the major barrier appears at the 0.6650 level following the 14-day Exponential Moving Average (EMA) at 0.6699 aligned with the psychological level at 0.6700.

[/s2If]

The NEHCAP currently runs the following trading systems for clients. They can be bought and run on your funds.

The system is trading live: LIVE ACCOUNT TRACKING
Contact Us: Contact
The HFT_FIX can be run free for 2 weeks on any broker with a ECN. Apply for a free trial
Join Our Telegram Group