Australian Dollar, AUD/USD, US GDP, Fed, Doji – Asia Pacific Market Open:
- Australian dollar Followed by US GDP Data Improved Sentiment
- Mixed reports have opened the door for both hard and soft landings
- AUD/USD Asia-Pacific stocks could rise if they follow US lead
Recommended by Daniel Dubrovsky
Get Your Free AUD Prediction
Asia-Pacific Markets Briefing – AUD/USD Could Gain After Rosy US Session
The sentiment-linked Australian dollar rose cautiously on Thursday after U.S. GDP data boosted Wall Street’s risk appetite. At the end of the session, the Dow Jones, S&P 500 and Nasdaq 100 each fell at 0.61. %, 1.1%, and 1.76%. This risk-on dynamic has dampened demand for haven assets and pushed the US dollar down.
In the fourth quarter of 2022, the U.S. economy grew 2.9% quarter-on-quarter. This was higher than his 2.6% of consensus. However, the largest segment of growth, personal consumption, expanded by only 2.1% against a forecast of 2.9%. The report details that the unexpected rise in headline rates was caused by volatile factors such as rising inventories and government spending.
All in all, this probably painted a mixed picture. An argument can be made here indicating hard and soft landings. This leaves the market hopeful that the tightening cycle will end in the coming months, and the Federal Reserve may continue on its current path. The Australian dollar has also benefited from a surprisingly strong local inflation report earlier this week. Increase in RBA rate hike betting.
Heading into Friday’s Asia-Pacific trading session, AUD/USD will be eyeing Australian PPI data for Q4. Markets may keep eye on more hawkish RBA with higher readings consistent with CPI report.Australian dollar continues to gain if traders extend rosy Wall Street trading session in Asia further You may get
Technical Analysis of the Australian Dollar
On the daily chart, AUD/USD appears to be trading within the bounds of a bearish rising wedge. Meanwhile, a comrade candlestick pattern emerged as the price tested his August highs. The latter is a sign of indecision. If the price rejects resistance, it may fall towards the bottom of the wedge. Otherwise, a stretched profit would push the May high to 0.7283.
Recommended by Daniel Dubrovsky
top trading lessons
AUD/USD daily chart
Charts created with TradingView
— Written by Daniel Dubrovsky, Senior Strategist at DailyFX.com
To contact Daniel, follow him on Twitter.@ddubrovskyFX