American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

AUD/USD forecast: Aussie plunges ahead of key economic data

by admin January 13, 2025
January 13, 2025
AUD/USD forecast: Aussie plunges ahead of key economic data

The AUD/USD exchange rate continued its strong sell-off on Monday. It dropped to a low of 0.6140, its lowest point since April 2020. It has fallen by 11.68% from its highest level in 2024 and 24% from its 2021 highs. So, what next for the AUD to USD pair ahead of the US inflation and Australia jobs data?

AUD/USD forecast ahead of Australia jobs and US CPI data

The AUD/USD pair has continued its strong downtrend in the past few months as the US dollar index has soared. It has dropped from a high of 0.6933 in September last year to a low of 0.6140, its lowest point in April 2020.

The weekly chart shows that the pair has dropped below the key support point at 0.6272, its lowest level in October last year. It has also slipped below the crucial support point at 0.6175, its lowest swing in 2022.

The pair has also slipped below the descending trendline that connects the highest swing since March 2021. It remains below the 50-week moving average and is now at the strong, pivot, reverse point of the Murrey Math Lines. 

The Percentage Price Oscillator (PPO), a unique form of the MACD, has dropped below the zero line and is pointing downwards. Also, the Stochastic Relative Strength Index (RSI) has continued falling and is at the oversold level. 

Therefore, the pair will likely continue falling as sellers target the ultimate support of the Murrey Math Lines indicator at 0.5860. The stop-loss of this trade is at 0.6270.

AUD/USD chart by TradingView

Australian jobs data ahead

The AUD/USD pair will be in the spotlight ahead of Thursday’s Australia jobs data. Economists expect these numbers to show that the unemployment rate rose from 3.9% in November to 4.0% in December. They expect these numbers to reveal that the participation rate rose to 67% as the economy added over 14.5k jobs. 

These numbers will provide more color about the state of the Australian economy as signs show that it is slowing. The most recent economic data showed that the economy remained sluggish in the third quarter. 

It expanded by 0.8% in the third quarter, the worst reading – excluding during the Covid-19 pandemic – since 1991. 

Australia’s inflation has also moved downwards in the past few months. The headline Consumer Price Index (CPI) has dropped from 7.8% in 2023 to 2.8%. Therefore, analysts expect the Reserve Bank of Australia will maintain a dovish tone this year and start cutting rates.

On the other hand, the Federal Reserve may maintain a more hawkish tone this year as inflation remains steady and the labor market strengthens. The most recent data showed that the labor market strengthened in December. The unemployment rate dropped to 4.1% as the economy created 256k jobs. As a result, analysts at ING lowered their rate estimates for the year, saying:

“We will get confirmation next month with revisions to subsequent data too. That could yet change the story, but for now we have to admit that our forecast of three rate cuts in 2025 may be too aggressive.”

The key important data to watch will be the upcoming US inflation numbers scheduled on Wednesday. Economists expect these numbers to show that the headline Consumer Price Index (CPI) rose to 2.9% in December from 2.7% in the previous month.

The AUD/USD pair may also drop ahead of Donald Trump’s inauguration on Monday. Trump has hinted that he supports tariffs, which may hurt China, Australia’s biggest trading partner.

The post AUD/USD forecast: Aussie plunges ahead of key economic data appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Tron price prediction: where technicals meet good fundamentals
next post
GBP/USD analysis ahead of UK and US consumer inflation data

Related Posts

Top CAC 40 shares to watch: Accor, Airbus,...

February 14, 2025

Nova Announces Closing of US$3.3m NASDAQ IPO

July 26, 2024

Pi crypto price prediction: is Pi Network about...

June 16, 2025

Top 3 reasons S&P 500 index ETFs like...

April 5, 2025

Getchell Gold Corp. Announces Warrant Extension and Debt...

May 2, 2024

SCHD ETF: Top 3 reasons to buy the...

April 8, 2025

Ferrari stock price forms a rare bullish pattern,...

February 10, 2025

Box stock price forecast ahead of earnings: buy...

May 25, 2025

Oxford Lane Capital (OXLC) has a fat 20%...

October 29, 2024

Here’s why the GLD ETF stock has surged...

April 21, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved