The Australian Dollar (AUD) to US Dollar (USD) exchange rate is showing a slight increase, as it trades close to 0.6530. This comes after the release of mixed data from China.
China’s Consumer Price Index (CPI) dropped 0.8% YoY in January, having declined 0.3% in December. The market expectation was for a 0.5% decrease. Chinese CPI inflation climbed to 0.3% over the month in January versus the 0.1% print in December, missing the 0.4% increase expected.
China’s Producer Price Index (PPI) fell 2.5% YoY in January, compared with a 2.7% drop seen in November. The data beat expectations for a 2.6% decline in the reported period.
Earlier in the week, the Australian dollar has been recovering some of its recent losses in the wake of a decision by the Reserve Bank of Australia (RBA) to hold off on rate cuts. Despite a slump in fourth-quarter inflation to 0.6%, the bank maintains a cautious stance due to the uncertainty surrounding the timing and path to a 2% inflation rate. The near-term growth forecasts were also downgraded due to a less optimistic consumer spending outlook.
For the intraday period, AUD/USD is experiencing downward pressure, with a decline of 25-43 pips. The suggested action for this asset is to sell, with an entry price (pivot) set at 0.6530. Target levels for taking profit are proposed at 0.6495 and 0.6480.
We recommend that your exposure should not exceed 2% per trade in order to manage risk effectively. This analysis pertains to the spot market. It’s worth noting that the Relative Strength Index (RSI) indicates a momentum shift to the downside.
AUD Strength Against Other Currencies
When comparing the AUD to other major currencies today, it’s evident that the AUD has experienced various degrees of change.
Currency Performance Table
| Currency | AUD Change (%) |
|---|---|
| USD (US Dollar) | +0.10% |
| EUR (Euro) | +0.07% |
| GBP (British Pound) | +0.06% |
| CAD (Canadian Dollar) | +0.04% |
| JPY (Japanese Yen) | +0.16% |
| NZD (New Zealand Dollar) | 0.00% |
| CHF (Swiss Franc) | 0.00% |
Factors Influencing AUD Value
These rates are subject to fluctuations based on a variety of factors, including geopolitical events, economic indicators, and market sentiment. As such, it’s always advisable to keep an eye on the latest news and trends that could potentially impact currency exchange rates.
Disclaimer:
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
