Solid News

AUDUSD Growth on the Back of Rising Prices for Commodities

12/27/2022 11:45 PM

After an unsuccessful attempt by the "bears" to break through the support level of 0.6670, the AUD/USD pair rushed to renew the December high around 0.6900. The Australian dollar is supported by the weakening of the US currency, caused by the growing risks of a recession in the national economy in 2023 against the backdrop of steps taken by the US Federal Reserve to tighten monetary policy to combat record inflation.

Last week, the Federal Reserve Bank (FRB) of St. Louis released data from the so-called Sahm Rule, which real-time evaluates the business cycle. The indicator is based on monthly unemployment data from the Bureau of Labor Statistics, and in all cases where the three-month moving average of the indicator exceeded its 12-month low of 0.50 points, the US economy was either already in recession or entering one soon. In November this year, the value was at 0.07 points, which indicates the beginning of a global recession.

Another factor that supports the growth of the Australian dollar is the rise in prices for commodities and precious metals. Thus, over the past two weeks, WTI Crude Oil added 10.5%, while gold positions are strengthening at a slightly slower pace: gold has risen in price by 2.5% over the month, but the overall positive trend continues.

If the impact of the above factors continues, the AUD/USD pair may renew the December high within two to three weeks.

The long-term trend is with the target at 0.6900. After its breakout, the growth will continue to 0.7000. However, if the support level of 0.6670 is broken, we can expect a recovery of the downtrend with the targets at 0.6585 and 0.6500.

The medium-term trend is upwards: last week, traders unsuccessfully tried to break through the key support of the trend around 0.6693–0.6673, as a result of which the price rose and is currently trying to renew the high of the last week around 0.6766, after consolidation above which the positive dynamics will develop towards the target zone 4 (0.6929–0.6909).

Resistance levels: 0.6900, 0.7000. | Support levels: 0.6670, 0.6585, 0.6500.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024