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Key Parameters of the Australian Economy are Declining

12/2/2022 12:03 PM

The AUD/USD pair is correcting around 0.6811. However, analysts are skeptical about continuing the upward dynamics, as the statistics recorded growing problems in the Australian economy.

Thus, the index of manufacturing activity from AIG in November fell to 44.7 points from 49.6 points earlier, and the Manufacturing PMI amounted to 51.3 points, which is lower than 52.7 points earlier. The volume of investments also continues to decline: investments in production equipment in the third quarter lost 1.6%, and capital investments of individuals decreased by 0.6%. Even more critical is the 0.2% decline in retail sales in November after a positive 0.6% trend in October, which reflects a drop in buying activity due to rising prices.

The negative dynamics of the US currency prevent a significant weakening of the AUD/USD pair: the dollar, for the first time since mid-August, fell below 105.000 in the USD Index against the backdrop of poor statistics on the labor market. The number of initial jobless claims amounted to 225.0K, which is better than 241.0K a week earlier, but the total number of citizens receiving assistance from the state reached 1.608M, exceeding 1.551M a week earlier and renewing the February maximum.

On the daily chart of the asset, the trading instrument is moving within a downward channel and is preparing to break the range resistance line.

Technical indicators keep a buy signal: fast EMAs on the Alligator indicator move away from the signal line, and the AO oscillator histogram forms downward bars in the buying zone.

Resistance levels: 0.6855, 0.7050. | Support levels: 0.6710, 0.6530.

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