Australian dollar

Foreword: Although the Australian dollar rose for four consecutive trading days, it continued to rise to 0.7246, but fell most of the gains before the close. AUD/USD followed the stock market volatility, Asian stocks rose, and then US stocks were weak. Australian consumer inflation expectations (December) recorded 4%, compared to 3.6%. There is no economic data released in Australia during the day, China will announce November retail sales, China's industrial added value per year (November) and fixed asset investment, if China's economic data is expected to boost the Australian dollar / US dollar.

On the technical side, the 4-hour chart shows that the AUD/USD remains near the 23.6% retracement of the recent decline, with selling near the 200 SMA, above the 20 SMA in the uncertain direction. The 100SMA direction is unclear, meeting the 38.2% retracement of the same downtrend. The technical indicators have lost their upside momentum and are currently suppressing the mid-line. Therefore, it is necessary to be cautious waiting for the exchange rate to effectively break through the trend channel resistance. Currently, it is located near 0.7250, in order to establish a position for further short-term rise.

Summary: Progress in Sino-US trade negotiations has led to a sharp recovery in risk appetite. In addition, there are reports that China has already purchased US soybeans again, and further risk appetite has rebounded to increase the Australian dollar. The Reserve Bank of Australia (RBA) published a useful explanation of the exchange rate in its fourth quarter announcement, in which it reiterated when and how to intervene in the Australian dollar exchange rate - "If the foreign exchange market becomes disordered or dysfunctional, the central bank will still Can intervene." The upper resistance is 0.7250 and the lower support is 0.7140.

Article from AETOS