Australian Dollar, AUD/USD, Westpac Consumer Confidence, Technical Outlook – TALKING POINTS

  • Asia-Pacific markets face rocky begin after a blended session on Wall Street
  • Australia’s Westpac client confidence eyed as potential threat to AUD
  • AUD/USD retakes 50-day SMA after in a single day acquire, however momentum appears fragile

Tuesday’s Asia-Pacific Outlook

The Australian Dollar is trying to find route in Asia-Pacific buying and selling after rising greater than 1% in a single day. Stocks closed blended on Wall Street. The tech-heavy Nasdaq-100 Index (NDX) fell, and the small-cap Russell 2000 rose. Rising oil costs helped assist vitality shares, with WTI crude oil and Brent oil costs rising greater than 2%.

Copper and iron ore costs are larger, aiding the commodity-sensitive Aussie Dollar. China’s commerce stability information confirmed a renewed urge for food for a lot of commodities in July. Goldman Sachs lower its Brent crude oil value forecast for the third quarter from $110 to $140. Energy merchants are looking forward to month-to-month reviews from OPEC and the International Energy Agency this week, together with stock information from the API and EIA.

OZ Minerals rejected an unsolicited provide from BHP Group value A$8.34 billion. The CEO of OZ Minerals appeared unimpressed with the provide, however it’s unknown if BHP will modify its bid. Overall, nevertheless, it’s a constructive signal for the copper trade. The latest drop in costs does favor the place of bigger corporations which can be doubtless higher capitalized.

New Zealand’s digital retail card spending fell 0.2% from the prior month in July. NZD/USD climbed above its 50-day Simple Moving Average throughout New York hours. A transfer larger in iron ore costs helped assist AUD, however costs face a doubtlessly unstable session at present, with Westpac client confidence due shortly. The gauge has fallen since January, and the RBA’s latest charge hike could have dragged sentiment additional.

Notable Events for August 09:

Philippines – Balance of Trade (June)

Australia – NAB Business Confidence

Philippines – GDP Growth Rate QoQ (Q2)

Thailand – Consumer Confidence (July)

Japan – 30-Year JGB Auction

Indonesia – Retail Sales YoY (June)

AUD/USD Technical Outlook

AUD/USD is buying and selling again above its 50-day Simple Moving Average (SMA) after rising from its 20-day SMA. A break above the 0.7036 degree could clear a path for extra positive factors. However, RSI and MACD, whereas constructive, have began to average. A pullback would intention for assist across the 20- and 50-day SMAs.

AUD/USD Daily Chart

Chart created with TradingView

— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the feedback part under or @FxWestwater on Twitter

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