Australian Dollar Traders Higher Alongside Dow Jones Before Powell Speech


Australian Dollar, AUD/USD, China, Iron Ore, Technical Outlook – TALKING POINTS

  • Australian Dollar climbs with US shares as merchants shift again into threat belongings
  • US-listed Chinese shares rocketed after US and Chinese regulators close to deal
  • AUD/USD takes goal on the 100-day SMA after costs clear technical obstacles

Friday’s Asia-Pacific Outlook

Asia-Pacific markets look able to open larger in the present day after US shares rose. The high-beta Nasdaq-100 Index (NDX) climbed 1.75%, and the Dow Jones Industrial Average rose 0.98%. Chinese shares listed on US exchanges, American depository receipts, surged after the Wall Street Journal reported that US and Chinese regulators had been shut to creating a deal that might doubtlessly resolve accounting and regulatory points that threatened to see the shares delisted.

The Nasdaq Golden Dragon China Index rocketed 6% larger in New York. Alibaba, the Chinese e-commerce large, helped carry these features, including practically 8%. The settlement, reported by WSJ, would allow auditors from the US Public Company Accounting Oversight Board (PCAOB) to examine monetary statements in Hong Kong.

The transfer alerts how precious the US investing pool is price to Chinese firms and Beijing, particularly when expansive financial coverage could dissuade overseas funding. China’s Li Zhong—Vice Minister of the Ministry of Human Resources and Social Security—mentioned, on Thursday, that the federal government will deal with supportive financial insurance policies, together with fiscal, financial, and industrial sector, in a bid to help China’s labor market. The offshore Yuan rose round 0.3% versus the Greenback.

Risk-sensitive APAC currencies, together with AUD and NZD, moved larger in a single day. AUD/USD outpaced its main pairs as AUD-friendly iron ore costs. New Zealand’s ANZ printed an August replace on client confidence, with the gauge rising to 85.4 from 81.9 within the prior month. Markets will see Tokyo CPI cross the wires this morning, adopted by Thailand’s July trade steadiness information. However, merchants are keenly centered on the upcoming US PCE information and Fed Chair Powell’s Jackson Hole speech.

AUD/USD Technical Outlook

AUD/USD appears primed to maneuver larger on a technical foundation. After piercing via the 38.2% Fibonacci and the 50-day Simple Moving Average, bulls are up towards the falling 100-day SMA and the 23.6% Fib. The Relative Strength Index and MACD oscillators are monitoring larger, signaling a possible tailwind for costs.

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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