Australian Dollar, AUD/USD, China, Market Sentiment, Technical Outlook – TALKING POINTS
- Asia-Pacific merchants eye one other event-packed week forward
- Newswires out of China could affect broader market sentiment
- AUD/USD assaults 50-day SMA after costs rise from Falling Wedge
Monday’s Asia-Pacific Outlook
Asia-Pacific merchants face a doubtlessly unstable week, with a number of high-impact occasions forward that will shift market sentiment. Equity indexes moved greater throughout US, European and APAC markets because the US Dollar pulled again. The DXY Index fell for a second week, weighed down by an advancing Yen, Euro and Australian Dollar.
The Australian Dollar might even see extra positive aspects this week if threat urge for food holds up, though market sentiment has been fragile as merchants repeatedly digest financial information, central financial institution commentary and different indicators. Later this week, Australia’s second-quarter inflation price could elevate AUD/USD if the information surprises to the upside. The Bloomberg consensus forecast sees a 6.3% year-over-year improve, up from 5.1%.
China’s property sector woes and its broader financial situation will possible proceed to play a massive half in influencing market sentiment. Hong Kong’s Financial Secretary Paul Chan wrote in a weblog put up over the weekend that Hong Kong’s monetary scenario is sound. Mr. Chan’s feedback are in response to the big variety of capital outflows seen during the last a number of months, inflicting some to invest that town’s financial system could quickly turn into illiquid.
Traders face a comparatively gentle financial docket for at the moment, however a number of doubtlessly high-impact occasions loom. The United States will see a client confidence replace and an advance learn on second-quarter gross home product (GDP) progress. Those occasions could trigger massive shifts within the US Dollar, which has broad-ranging potential to disrupt monetary markets. Europe can be due for its Q2 GDP print to cross the wires.
Notable Events for July 25
Thailand – New Car Sales YoY (June)
Thailand – Balance of Trade (June)
Singapore – Core Inflation Rate YoY (June)
Taiwan – Industrial Production YoY (June)
AUD/USD Technical Outlook
AUD/USD rose to its 50-day Simple Moving Average after costs pierced above wedge resistance. The value goal, measured by the wedge’s top, suggests costs could proceed rising. The 0.7000 degree would assist to place the cross again on a stable footing if costs can overtake the 50-day SMA. A pullback to the wedge is one other doable consequence.
AUD/USD Daily Chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the feedback part under or @FxWestwater on Twitter