Forex: AUD/USD: Australian Retail Sales up 0.5%; no change at RBA

on Dec 3, 2013
Updated: Oct 21, 2019
Listen Tuesday, December 3rd:_ The AUD/USD yesterday opened a 19-pip gap up from Friday’s close price of 0.9107, with the Australian dollar strengthening against its American counterpart on positive news from the Chinese manufacturing sector.

The Markit HSBC Final China Manufacturing Purchasing Managers Index rose to 50.8 points in November from its preliminary reading of 50.4 and close to its prior reading of 50.9. And the official Manufacturing PMI matched the prior 51.4 points – an 18-month high.
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The pair’s rise was also supported by the 89-hour simple moving average and the correction afforded by the lower line of the ascending channel within which the price moved from Friday to yesterday. A high was reached at 0.9167 before retracement saw the pair breaking out of the corrective channel. The ensuing downwards movement was supported by the November readings for the Markit Final US Manufacturing PMI and the ISM Manufacturing PMI, rising to 54.7 and 57.3 respectively.

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The pair then reached a low at 0.9088 before rebounding to close at 0.9113, losing 0.13 percent intraday. The price action formed a spinning top candlestick patter on the daily chart, indicating market indecision.
In today’s trading, the pair initially today rose to an ongoing intraday high at 0.9132 on release of Australian Retail Sales m/m for October, with growth of 0.5 percent beating expectations for a 0.4 percent increase.

Australia’s Current Account for the third quarter logged a deficit of A$12.7 billion, disappointing analyst expectations for a A$11.55 billion gap. Q2 was revised up to A$12.1 billion in deficit, from -A$9.4 billion.
Following that news, the pair started to again fall, with the descent accelerated by the Reserve Bank of Australia’s decision to keep the benchmark interest rate at its current level of 2.5 percent, matching expectations. In his statement on the rate decision, RBA governor Glenn Stevens reiterated that more balanced economic growth was needed before any change in the interest rate.

After dropping to 0.9056 – its lowest level since Friday – the pair is currently trading at 0.9085.
In the United States today, Redbook Research is scheduled to release its Redbook Index for the past week at 13.55 UTC and the ISM New York Index for November follows at 14.45 UTC. The IBD/TIPP Economic Optimism Index m/m for December is due out at 15.00 UTC and Total Vehicle Sales for November will appear at some later point in the day, after major auto manufacturers report their figures.
Resistances today: 0.9100, 0.9125 and 0.9155.
Supports: 0.9075, 0.9045 and 0.9000.
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