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You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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AUDUSD is Looking to Breakout or Breakdown

The AUDUSD exchange rate is trading at a key level with the 0.6530 resistance setting up a potential breakout or breakdown in the price. 

US inflation data is the headline figure on Thursday and traders can look for the numbers to force the next move.

AUDUSD – Daily Chart

audusd

There was bad news for the Australian economy this week, with consumer confidence numbers plunging to a two-year low. The Westpac survey showed on Tuesday that rising inflation, higher interest rates, and sluggish wage growth had weighed on spending power in the country.

The Westpac Melbourne Institute Consumer Sentiment Index fell by 6.9% this month, which is much larger than last month’s 0.9% drop. The reading was the worst drop in over two years, and also saw the index slump to a historical low of 78.

The latest reading comes after data showed that Australian inflation surged to a 32-year high in the quarter to September. The central bank hiked interest rates by 25 basis points in November, but a smaller increase did not support consumer sentiment.

The labour market has remained strong in Australia, but Tuesday’s survey showed that consumers were becoming less confident about the jobs market outlook.

Consumer spending had been a key driver of Australia's economic growth this year and was a support for the Australian dollar. The signs are now pointing to a slowdown that can boost the US dollar.

The US economy will provide near-term clarity for the AUDUSD with the release of inflation data. The market is expecting a drop to 8% from 8.2% in the price index and that could soften the dollar. Traders will have to watch the pair closely to see if this resistance level can be taken out.

Last Updated: 10/11/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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