After trading overnight in a rollercoaster, the dollar tacked higher on Tuesday’s trading as worries of the OPEC meeting consensus and month-end data releases dominated the market today.
With the dollar continuing its previously paused rally, its Australian counterpart slipped, putting AUD/USD in a current loss of 0.24% to 0.7463 as of 10:45 GMT. Attributing to the Aussie’s downtick is the decline of China commodity futures. The pair touched an intraday low of 0.74517 and a high of 0.74972.
We can see the AUD/USD pair testing at 0.74881 on the given chart below, with a support at 0.73100. Should the candle be able to break through, the new resistance level is indicated on the level of 0.75427. Right now, however, it is unlikely to push past the resistance as the dollar gained ground on the aforementioned worries on the OPEC agreement and US key data due this month-end.
Boosting the dollar higher in recent weeks are bets that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation, and prospects that a rate hike by the Federal Reserve in December will happen is a near certainty.
Seeing the given chart, dollar was been broadly stronger against the Aussie since November 9, the day of the US elections on the result that Republican Donald Trump is the new president of the United States. This continued a strong string of rally which had dragged AUD/USD to a multi-month low of 0.73093.
The greenback took a breather beginning November 21.
GDP, Consumer Data
Market players were awaiting the announcement of preliminary third-quarter economic growth data from the US for further hints on the strength of the economy.
Third-quarter GDP growth is set to be revised somewhat to 3.0% q/q, from 2.9% in the preliminary estimation. With consumer spending and confidence robust, growth will continue to expand at a modest pace. The US economy should continue to grow, yet the path has become a bit unsure with president-elect Donald Trump’s fiscal proposal, which could accelerate US growth 0.3 to 0.4% in 2017.
Consumer confidence is seen to increase to 100.00 after the minimal loss in October to 98.6. Solid consumer confidence should further support GDP growth.
OPEC in Vienna
Meanwhile, investors were also looking ahead to tomorrow’s OPEC meeting, amid increasing doubts over the possibility for a production cut deal.
So far with FSM News’ research, Iran and Iraq are countering pressure from Saudi Arabia to curb oil production, making it hard for the Organization of the Petroleum Exporting Countries to reach a global output-limiting consensus when it meets on Wednesday.
The meeting on Monday did not yield any agreement as Saudi Arabia declined to attend.
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