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Australian Dollar Remains Under Pressure

12/21/2022 11:06 AM

The Australian dollar shows the weak negative dynamics, developing the "bearish" momentum formed the day before. The AUD/USD pair was noticeably declining on Tuesday and updated the local lows of November 22; however, closer to the close of the daily session, the "bulls" were able to win back a significant part of the losses. Moderate pressure on the positions of the US currency was exerted by weak macroeconomic statistics from the US. In particular, analysts drew attention to the decline in the dynamics of Housing Starts in November by 0.5% after a decline of 2.1% in the previous month. The number of Building Permits issued over the same period decreased by 11.2%, losing 3.3% in October.

In turn, moderate pressure on the positions of the Australian currency remained after the decision of the Bank of Japan to increase the range of possible deviation of government bond yields from the target levels. Analysts took this decision as the first step towards abandoning the ultra-soft monetary policy, especially since inflation in Japan is in the region of 3.5%.

Slight pressure on the position of the instrument today is exerted by statistics from Australia: the Westpac Leading Index in November fell by 0.1% after falling by 0.05% a month earlier.

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range expands from below, making way for new local lows for the "bears". MACD is going down preserving a stable sell signal (located below the signal line). The indicator is about to test the zero level. Stochastic, having rebounded from its lows is reversing in the direction of growth, signaling in favor of the development of corrective dynamics in the near future.

Resistance levels: 0.6700, 0.6750, 0.6800, 0.6850. | Support levels: 0.6628, 0.6583, 0.6520, 0.6450.

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