The Alabama Senate race saw a Democratic win, and the outcome poses a big risk for the Republicans, who are headed for a re-election in 2018. Learn more from the 13 December AUDUSD Fundamental Analysis.
13 December, GKFX – The AUD/USD pair extends its rebound from half-yearly lows into a fourth day today, on the back of upbeat Aus macro news and broad-based USD correction.
Key Quotes
- DXY extends correction from 3-week tops.
- Lifted on a big beat on Aus consumer confidence.
- Rebound in gold and oil prices underpins.
- US CPI, FOMC decision on tap.
AUD/USD: DXY drops on US politics
The Aussie resumed its up move in Asia, benefiting from a solid boost seen in the Australian consumer confidence data.
Consumer confidence surprised to the upside - Westpac
"The Westpac Melbourne Institute Index of Consumer Sentiment rose 3.6% to 103.3 in December from 99.7 in November."
Moreover, a reversal staged by the US dollar from 3-week tops reached against its main competitors, in response to the renewed US political risks, also added to latest leg higher on the spot.
Reuters reported that the Alabama Senate race saw a Democratic win, the first Democratic Senate win in the state since 1992. The outcome poses a big risk for the Republicans, who are headed for a re-election in 2018.
The major now flirts with yesterday’s high of 0.7580 levels, with the AUD bulls looking to regain 0.76 handle amid a recovery seen in gold and oil prices. Oil prices recover on the back of a big US crude drawdown news, while the yellow metal rebounds from 5-month lows amid fresh North Korean headlines and weaker Treasury yields.
All eyes now remain on the US CPI report and FOMC rate decision for fresh trading opportunities ahead of the Australian employment data due out tomorrow.
13 December AUDUSD Fundamental Analysis
According to Jim Langlands at FX Charts,
“The short-term indicators are still mixed, but trading from the short side continues to be the plan ahead of the FOMC Meeting (Wed) although it may be prudent to wait to sell it given the positive look of the 4-hour charts. Overall though, with the US$ looking generally underpinned elsewhere, I suspect that further upside for the Aud will be limited and selling into rallies is still preferred, but leave room for another squeeze towards 0.7580 and even to 0.7600.
On the downside, support will arrive at 0.7520, below which there will be plenty of work to do at 0.7500 and then again at 0.7470/80, which will be strong, so taking some profit on shorts, if/when we get there, and looking to resell into a rally may be a more medium-term plan.”
Disclaimer
This article “ 13 December AUDUSD Fundamental Analysis ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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