The AUD rose to a 2-week high - EBC Daily Snapshot
2023-10-25
Summary:
On Wednesday, the USD stabilized as the AUD surged to a near two-week high due to strong inflation data, hinting at potential interest rate hikes.
EBC Forex Snapshot
25 Oct 2023
The dollar steadied on Wednesday while the Australian dollar rose to a nearly two-week high on the chance of interest rate hikes after surprisingly strong inflation data.
Australia's consumer price index rose 1.2% in the third quarter due to higher fuel prices, above market forecasts for 1.1% and up from a 0.8% increase the previous quarter.
The British pound extended the previous day's losses as negative data affirmed the view that the BOE will likely hold interest rates next week.
The S&P Global UK Purchasing Managers' Index reached a nine-month low of 49.2 in October. The reading chimes with the trend in the eurozone.
| Citi (as of 16 Oct) | HSBC (as of 24 Oct) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0443 | 1.0834 | 1.0517 | 1.0751 |
| GBP/USD | 1.2011 | 1.2387 | 1.2076 | 1.2378 |
| USD/CHF | 0.8745 | 0.9338 | 0.8793 | 0.9127 |
| AUD/USD | 0.6286 | 0.6522 | 0.6264 | 0.6425 |
| USD/CAD | 1.3381 | 1.3785 | 1.3576 | 1.3794 |
| USD/JPY | 146.00 | 150.16 | 148.56 | 150.44 |
The green numbers in the table indicate an increase in data, the red numbers indicate a decrease in data, and the black numbers indicate that the data remains unchanged.
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