AUDUSD Signal Today – 01/02: Bearish Flag Pre-NFP for AUDUSD –

We commit to never sharing or selling your personal information
The outlook for the pair is still bearish, with the next point to watch being the lower side of the channel at 0.6550.
AUDUSD Signal Today - 01/02: Bearish Flag Pre-NFP for AUDUSD (Graph)
The AUD/USD pair was flat on Thursday morning as the market digested the hawkish Fed decision and the encouraging Australian inflation data. The pair initially dropped to a low of 0.6560 on Wednesday and then rebounded to 0.6615 after the Fed decision.

Fed decision and Australia inflation

The Australian Bureau of Statistics (ABS) published encouraging inflation data on Wednesday. The headline Consumer Price Index (CPI) retreated from 5.4% in Q3 to 4.1% in Q4. It also retreated from 1.2% to 0.6% on a MoM basis.
Additionally, the trimmed and weighted mean CPI figures dropped to 4.2% and 4.3%, respectively. Therefore, while these figures are much higher than the Reserve Bank of Australia (RBA) target of 2.0%, they are heading in the right direction.
Therefore, the expectation is that the RBA will leave interest rates unchanged in its next meeting. It will also commit to holding them in this level as it observes the state of inflation and economic growth.
One of the biggest risks for Australia is that China, its biggest trading partner, is not doing well. Manufacturing activity is in contraction mode, house prices have plunged, while the stock market has continued to retreat.
The AUD/USD pair also reacted mildly to the hawkish pause by the Fed. In its first meeting of the year, the Fed decided to leave rates intact between 5.25% and 5.50%. It also warned that it was not ready to start cutting rates.
Instead, it maintained that it will continue being data-dependent when deciding to cut interest rates. The recent economic numbers mean that the Fed has no hurry to start cutting rates since inflation remains above 2% while the economy is still strong.
The next key data to watch will be the upcoming US NFP data set for Friday. These numbers will provide more details about the state of the economy. A report by ADP showed that the private sector created 107k jobs in December.

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker

AUD/USD technical analysis

The AUD/USD exchange rate has remained in a narrow range since January 16th. In this period, the pair has remained inside the ascending green channel. This channel is part of a bearish flag pattern, a popular continuation sign. It has continued to consolidate at the 50-period and 25-period moving averages. The Average Directional Index (ADX) has continued falling, signaling that there is no trend.
Therefore, the pair will likely have a bearish breakout in the coming days. Therefore, the outlook for the pair is still bearish, with the next point to watch being the lower side of the channel at 0.6550.
Ready to trade our daily Forex signals? Here’s a list of some of the best Forex platforms Australia to check out.
We will connect you with the broker that is most compatible for you.
Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top