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.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The Dollar Gained Further in Asian Trading Monday
The dollar held gains and rose slightly in Asia Monday as Japan's holiday cut liquidity, focusing attention on China's disappointing stimulus.
2024-10-14
Euro Stabilizes After Rebounding from 2-Month Low
The US dollar dipped from a two-month high but is set for a second consecutive weekly gain as weak labor market signals support faster Fed rate cuts.
2024-10-11
Australian Dollar Rebounds from Mid-September Lows
The US hovered near a two-month high on Thursday as markets grew confident in the Fed's patient monetary policy ahead of a key inflation report.
2024-10-10
