Australian Dollar Weakens On Muted Australian Data, China CPI Miss -

Australian Dollar Weakens On Muted Australian Data, China CPI Miss

Jan 09, 2025Jeremy ParkinsonFinance, No picture0

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AUD slides on Thursday, continuing its losing streak below 0.6200.

Slower Aussie Retail Sales fuel RBA rate cut bets.

China’s soft CPI dampens the Australian Dollar’s prospects.

AUD/USD slumps to near 0.6170 as the US Dollar performs strongly on a stubborn US inflation outlook on Thursday. The Aussie was a weak performer due to muted local data and soft Chinese inflation data. Investors now look ahead to US Nonfarm Payrolls (NFP) for hints on future rate actions from the Federal Reserve (Fed).

Daily digest market movers: Aussie weak as markets await Fed directions

Investors expect US President-elect Donald Trump’s pro-growth and inflationary policies to keep the Federal Reserve leaning hawkish.

December’s Federal Open Market Committee Meeting Minutes reveal Fed officials worried about a slowdown in disinflation, citing potential trade and immigration policy shifts.

Market participants await Friday’s US NFP release for new clues on the central bank’s next monetary policy steps.

On the data front, Australian Retail Sales grew 0.8% in November, undershooting the 1% forecast but above the previous 0.5%, upping RBA dovish bets.

Traders have fully priced in a 25-basis-point RBA rate cut for the April meeting, pressuring the Aussie.

China’s annual CPI for December edged up 0.1%, below the prior 0.2%, adding to concerns over the AUD’s proxy role in Chinese growth.

AUD/USD technical outlook: Bears reclaim control as key SMA caps recovery
The AUD/USD declined by 0.34% on Thursday, extending its losing streak for the third consecutive day. The Relative Strength Index (RSI) stands at 35, moving deeper into negative territory, while the Moving Average Convergence Divergence (MACD) histogram shows decreasing green bars.Bears have invalidated the latest bullish recovery attempt, and unless the pair clears its 20-day Simple Moving Average (SMA), the outlook will likely remain tilted to the downside.Supports: 0.6150, 0.6130, 0.6100.Resistances: 0.6200, 0.6215, 0.6250.More By This Author:Japanese Yen Recovers From Multi-Month Low Against USD On Stronger Wage Growth Data
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