Market news

19 November 2021

AUD/USD remains pinned below 0.7300 amid a quiet session

  • The aussie remains pressured under 0.7300, RBA rate hike chatter grows louder.
  • The US dollar snaps a two-day downtrend amid firmer Treasury yields, cautious mood.
  • AUD/USD looks to Fedspeak, US inflation, Chinese property sector concern will be eyed.  

AUD/USD is moving back and forth as the bears and bulls struggle to dominate amid a relatively quiet session this Friday.

At the time of writing, the pair is trading at 0.7282, up 0.05%.

The AUD mainly traded sideways overnight as the US dollar index finally paused for a breath. The market remains in 'sell-on rallies' mode, which will likely keep the AUD on the back foot over the coming days.

Along with this, market participants are again optimistic over the Reserve Bank of Australia (RBA) reports on the rate hike. However, The RBA policymakers have constantly been cautioning investors that the much-anticipated rate hike is not going to be announced anytime soon.

On November 16, RBA Governor Philip Lowe said, "the economy and inflation would have to turn out very differently from our central scenario for the Board to consider an increase in interest rates next year." He further went on to say, "It is likely to take time to meet the condition we have set for an increase in the cash rate and the Board is prepared to be patient."

Investors also take note of Chinese property concern that looms over the aussie. On Thursday, S&P Rating agency statement said that "despite recent bond coupon payments a default is still "highly likely" for China Evergrande Group," Meanwhile, another Rating agency Moody' also iterated its concern over Chinese property developers, it added, "liquidity stress will continue amid tight credit conditions and lowered sales."

Also, the positive news for the aussie that surfaced Thursday was that Victoria was about to ease of COVID-19 lockdown, providing a much-needed boost to the economy in the upcoming Q4. 

Looking ahead, besides the Fedspeak, there is no major data and events that will provide incentives to AUD/USD traders. However, the RBA rate hike and US inflation expectations will keep the investors focussed. 

AUD/USD technical levels

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location