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AUDUSD Market Update

11/11/2022 12:26 PM

The AUD/USD pair is correcting around 0.6652.

The upward momentum of the asset is constrained by statistics on the real estate market in Australia in October: the number of building permits issued fell sharply by 5.8% after rising by 28.1% in September, while the same indicator for private houses lost 7.8% after an increase of 4.8% earlier. The situation is unlikely to change in the near term, as the catalyst for weakening the sector is high interest rates on home loans, which are being actively adjusted due to the increase in the main rate of the Reserve Bank of Australia, and the trend is likely to continue, given yesterday's expected inflation data, which was revised upward to 6.0% from 5.4% previously.

The main factor in strengthening the positions of the AUD/USD pair is the active weakening of the US currency. First of all, investors are disappointed by the preliminary results of the national midterm elections, according to which the Republican Party is likely to win a majority in the House of Representatives. At the same time, the Democratic Party can retain control of the Senate. Pressure on the dollar was also exerted by data on the number of initial applications for unemployment benefits, which increased to 225.0K from 218.0K a week earlier. As a result, during the current week, its quotes have already lost more than three points in the USD Index, trading below 108.000.

On the daily chart of the asset, the price is moving within a downtrend, starting to work out the Head and shoulders reversal pattern.

Technical indicators reversed and issued a new buy signal, which is actively increasing: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, having moved into the buy zone, forms upward bars.

Resistance levels: 0.6680, 0.6860. | Support levels: 0.6520, 0.6360.

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