AUD/USD is finding short-term support at the 15-minute Pivot Point line.
Will the pair extend its uptrend in the next trading sessions?
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s trend pullback ahead of Australia’s CPI release. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
FHFA House Price Index for Q2: 3.1% y/y (2.9% forecast / previous); 0.3% m/m (0.6% m/m forecast; 0.7% m/m previous)
U.S. Job Openings and Labor Turnover Survey showed open job openings decreased from 9.17M in June to 8.83M in July
Conference Board U.S. consumer confidence: 106.1 (116.0 forecast; 117.0 previous)
Crypto asset manager Grayscale Investments wins its lawsuit against the SEC on Tuesday
New Zealand’s building consents dipped by 5.2% m/m (-25.4% y/y) in July vs. a 3.4% m/m uptick in June
Australian inflation slowed from 5.4% y/y to a 17-month low of 4.9% y/y in July driven by declines in holiday travel and fuel prices
Australia’s building approvals dropped by 8.1% m/m in July (vs. -0.8% expected, -7.9% previous)
Australia’s construction work done up by 0.4% q/q in Q2 (vs. 1.0% expected, 1.8% previous)
Japan’s consumer confidence slipped from 37.1 to 36.2 in August (vs. 37.5 expected)
Switzerland’s KOF economic barometer weakened from 92.2 to 91.1 in August, as “the indicators on the employment situation developed negatively” for the month
Spanish inflation rose again in August, up by 2.4% y/y vs. 2.1% in July thanks to a rise in fuel prices
Price Action News
Overlay of USD Pairs: 15-min
A bit of profit-taking from the U.S. session’s dollar selloff provided some support for the USD earlier today.
It also didn’t hurt the safe haven that North Rhine Westphalia, Germany’s most populous state, reported CPI rising 0.5% in August, an annual increase of 5.9%, above expectations. Meanwhile, Spanish CPI rose 0.5% on the month in August and is also above expectations.
The stronger-than-expected CPI reports highlighted the current high-interest rate environment and the (very real) possibility of further tightening by major central banks.
The dollar started Asian session trading by coming off its U.S. session lows and mostly extended its shallow upswings against counterparts like JPY, NZD, EUR, and CHF.
U.S. ADP report at 12:15 pm GMT
U.S. preliminary GDP and quarterly price index at 12:30 pm GMT
U.S. pending home sales at 2:00 pm GMT
U.S. crude oil inventories at 2:30 pm GMT
Japan’s preliminary industrial production at 11:50 pm GMT
Japan’s retail sales at 11:50 pm GMT
AU private capital expenditure at 1:30 am GMT (Aug 31)
China’s manufacturing and non-manufacturing PMIs at 1:30 am GMT (Aug 31)
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AUD/USD 15-min Forex Chart by TV
We’ve got a bunch of closely watched U.S. reports on tap so you know we gotta watch a U.S. dollar pair today!
I’m setting my sights on AUD/USD, which is finding support from the 15-minute Pivot Point line after getting rejected at the .6490 area.
Will AUD/USD extend its uptrend from its current levels? Or will the pair see some more selling before the bulls come back?
The U.S. ADP, preliminary GDP, and pending home sales are expected to print slightly weaker numbers compared to its last readings. If the previous U.S. session is any clue, it could translate to more USD weakness.
But China is also releasing its official PMI numbers during the Asian session. More importantly, markets see the PMIs coming in weaker than their July figures.
If the reports from the U.S. and China translate to risk aversion during the U.S. and early Asian session trading, then AUD/USD could revisit lower areas of interest like .6450 or .6430.
But if we see more USD weakness in the next couple of hours, then AUD/USD may bounce from its current support zone and revisit its weekly highs. It may even hit .6500 if we see enough bullish momentum!
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