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Australian Authorities will Tighten Control Over Cryptosphere

12/16/2022 11:36 AM

Australian dollar shows ambiguous dynamics of trading, consolidating at 0.6700. Investors are taking profits on short positions after a sharp decline in the AUD/USD pair the day before, which is due to the strengthening of the US currency, the demand for which is growing again against the backdrop of downtrends in the stock market.

Traders are analyzing the US Federal Reserve's decision to raise interest rates by 50 basis points, as well as the regulator's forecasts, which suggest that next year the value may exceed 5.0%. At the same time, there are still fears on the market regarding the slowdown in the global economy, which, among other things, is caused by the policy of high interest rates pursued by the world's leading central banks. In particular, the day before data from the United States reflected a sharp drop in Retail Sales in November by 0.6% after rising by 1.3% in the previous month, while analysts had expected a decline in dynamics of only 0.1%.

Today's data from Australia are also putting moderate pressure on the positions of the Australian dollar. The Composite PMI from Commonwealth Bank in December adjusted from 48.0 points to 47.3 points, the Manufacturing PMI from S&P Global fell from 51.3 points to 50.4 points, and the Services PMI adjusted from 47.6 points to 46.9 points.

The Australian authorities intend to increase control over the cryptocurrency sphere next year, as part of a plan to modernize the national financial system in response to the situation with the FTX exchange, after which the management of its Australian branches was forced to transfer control to licensed bankruptcy specialists. In particular, it is planned to develop conditions for the storage and licensing of crypto assets to protect investors, as well as designate tokens that should be regulated by financial legislation.

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is narrowing, reflecting appearance of multi-directional dynamics in the short term. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic shows similar dynamics; however, the indicator line is approaching its lows, indicating the risks of oversold Australian dollar in the ultra-short term.

Resistance levels: 0.6750, 0.6800, 0.6850, 0.6900. | Support levels: 0.6700, 0.6675, 0.6639, 0.6583.

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