AUD/USD Buoyed After PBOC Action as Wall Street Stocks Sink


Australian Dollar, AUD/USD, PBOC, Gold, Natural Gas, Technical Outlook – TALKING POINTS

  • Australian Dollar stays afloat regardless of a deep pullback in sentiment, sinking US shares
  • Natural gasoline surged in Europe, gold dropped towards a stronger Dollar and Treasuries fell
  • AUD/USD might even see additional consolidation if costs maintain above the August swing low

Tuesday’s Asia-Pacific Outlook

Asia-Pacific markets face rising headwinds after shares fell and the US Dollar surged in a single day in New York. The benchmark S&P 500 index closed 2.14% decrease, whereas the tech-heavy Nasdaq-100 Index fell 2.66% to the bottom since early August. The VIX volatility index jumped over 15%, posting its greatest every day achieve since June.

Treasury yields rose as merchants positioned themselves forward of this weekend when central bankers from all over the world will meet at Jackson Hole. The Fed pivot thesis, which largely drove equity power over the previous couple of weeks, seems to have fallen aside. That could result in extra Treasury shopping for all through the week. Traders count on Federal Reserve Chair Jerome Powell to reaffirm the central financial institution’s stance towards combating inflation.

The People’s Bank of China (PBOC) reduce the 1- and 5-year mortgage prime charges on Monday by 5 and 15 foundation factors, respectively. The larger-than-expected reduce within the 5-year LPR, linked to mortgage lending, despatched a sign of presidency assist for the ailing property sector. Chinese equity markets closed principally greater following the strikes. Still, many stay skeptical and see broader measures being mandatory to supply an ample backstop to the nation’s housing market.

Gold costs fell towards a surging US Dollar and US Treasury yields. The yellow metallic has misplaced floor for seven straight days, bringing XAU to the bottom stage since July 27. Copper held up higher towards the USD, possible underpinned by the PBOC’s latest actions. In Europe, pure gasoline costs rocketed greater as soon as once more, this time over fears {that a} key Russian pipeline will stay closed after a 3-day upkeep interval scheduled for subsequent week.

AUD/USD Technical Outlook

The Australian Dollar was almost unchanged versus the US Dollar in a single day. AUD/USD trimmed its in a single day good points and failed to carry above the 50-day Simple Moving Average, nonetheless. The MACD and RSI oscillators have moderated, though nonetheless beneath their respective midpoints. Further consolidation could happen throughout as we speak’s session. A break beneath the close by August low at 0.6859 would threaten a resumption of the prior bearish pattern.

AUD/USD Daily Chart

Chart created with TradingView

— Written by Thomas Westwater, Analyst for

To contact Thomas, use the feedback part beneath or @FxWestwater on Twitter

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