Solid News

The Australian Dollar Corrects after Two-day Decline

2/23/2023 10:32 AM

The AUD/USD pair shows a moderate increase, correcting after a two-day decline, as a result of which local lows from January 6 were updated. The positive dynamics is largely due to technical factors and the massive closing of long positions in the American currency after yesterday's publication of the February minutes of the US Federal Reserve meeting, which reflected the "hawkish" sentiment of the regulator, which will most likely mean a longer period of maintaining a high interest rate. As for the limit to which the rate can be increased in the next few months, investors still converge on around 5.00%.

The pressure on the positions of the Australian currency yesterday was also provided by not the most confident macroeconomic statistics. The volume of Construction Work Done in Australia in the fourth quarter of 2022 decreased by 0.4% after an increase of 2.2% in the previous period, while analysts expected an increase of only 1.5%. In turn, the data on the Wage Price Index for the same period reflected a decrease in the indicator from 1.0% to 0.8% on a quarterly basis, and an increase from 3.1% to 3.3% on an annual basis, with a forecast of 3.5% . The positive dynamics reached a maximum over the past ten years, which increases the fears of investors who believe that an inflationary spiral may form in the country.

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). Stochastic retains a steady downtrend but is located in close proximity to its lows, which indicates the risks of oversold Australian dollar in the ultra-short term.

Resistance levels: 0.6850, 0.6900, 0.6950, 0.7000. | Support levels: 0.6800, 0.6750, 0.6700, 0.6650.

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

Disclaimer 1: Solid ECN Securities LLC and it affiliates does not accept clients from Turkey, United States, and Europe.
Disclaimer 2: 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.
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.
Copyright All Right Reserved 2023