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Australian Economy Shows Signs of Decline

11/28/2022 11:09 PM

Amid the decline of the Australian dollar, the pair AUD/USD is correcting around 0.6685.

The reason for the negative dynamics was poor macroeconomic data: according to the Australian Bureau of Statistics, retail turnover in October fell by 0.2% after rising by 0.6% in September, which was the first decline since falling by 4.1% in December 2021 and is a consequence of the weakening in all leading industries, except for products retail trade. The leaders of the negative movement were department stores, which lost 2.4%, closely followed by the clothing trade sector (–2.0%), and for the first time since January, the indicators of restaurants and cafes decreased (–0.4%). ABS Head of Retail Statistics Ben Dorber said the correction results from higher interest rates and could be long-term.

During the Thanksgiving Day celebrations in the US, the quotes of the US dollar did not undergo significant changes, and the week started near 106.200 in the USD Index. Recently, more and more leading politicians in the United States are paying attention to the possible upcoming strike of railway workers, in which up to 100.0K employees can take part, against which US Congressman Brian Fitzpatrick said that Congress is going to intervene in the dialogue trade unions and loaders, so as not to subject the national economy to a new shock.

On the daily chart of the asset, the price is moving in a downward channel, and after reaching the resistance line, a reversal begins to form.

Technical indicators maintain a weakening buy signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram forms downward bars in the buying zone.

Resistance levels: 0.6765, 0.6970. | Support levels: 0.6600, 0.6410.

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