AUD/USD pushes higher with strong momentum
Gary Christie December 11, 2020 8:39 AM
The pair is accelerating past September highs.
The US Dollar was bearish against most of its major pairs on Thursday with the exception of the GBP. On the US economic data front, Initial Jobless Claims jumped to 853K for the week ending December 5th (725K expected), from a revised 716K in the week before. Continuing Claims unexpectedly rose to 5,757K for the week ending November 28th (5,210K expected), from a revised 5,527K in the prior week. The Consumer Price Index increased 0.2% on month in November (+0.1% expected), from unchanged in October. Finally, the Monthly Budget Deficit contracted to 145.3 billion dollars on month in November (198.5 billion dollars expected), from 284.1 billion dollars in October.
On Friday, the Producer Price Index Final Demand for November is expected to rise 0.1% on month, compared to +0.3% in October. Finally, the University of Michigan's Consumer Sentiment Index for the December preliminary reading is expected to slip to 76.0 on month, from 76.9 in the November final reading.
The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CAD. In Europe, the European Central Bank has kept its key rates unchanged and has decided to boost PEPP (Pandemic Emergency Purchase Program) by 500 billion euros to at least March 2022. Separately, the UK Office for National Statistics has reported October GDP at +0.4% on month (vs flat expected), industrial production at +1.3% (vs +0.3% on month expected) and trade balance at 1.738 billion pounds deficit (vs 156 million pounds deficit expected). Furthermore, France's INSEE has posted October industrial production at +1.6% (vs +0.4% on month expected).
The Australian dollar was bullish against all of its major pairs.
The AUD/USD broke above our first target of 0.75 in Thursday's trading breaking September highs. The pair gained an impressive 91 pips making it the top major pair of the day in terms of performance. Price action is currently above the upper Bollinger band indicating bullish momentum. We have raised our stop-loss to match the 20-day moving average at 0.738 with new targets of 0.765 and 0.777 in extension
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.