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The Aussie started the year on the top of the forex heap last week.

Can the bulls pull back-to-back wins?

Here are potential market-moving themes that can affect the comdoll in the next few days!

Lower-tier economic reports

China’s data releases

  • China is one of Australia’s biggest trading partners so China’s growth prospects can influence AUD’s price action
  • China’s CPI shows slower consumer inflation, while PPI numbers point to continued deflation for businesses
  • Foreign direct investment (Jan 13, Asian session) might slow down from 6.3% to 6.0%
  • Trade data (Jan 14, Asian session) to reflect tighter trade surplus in December
  • Exports are expected to slow down, while imports could speed up for the month

Market risk sentiment

  • Stimulus prospects in the U.S. can limit AUD’s gains against USD in the next few days
  • COVID-19 updates (new strains, rising cases, lockdown plans, vaccine schedule) will continue to influence overall risk-taking
  • Top-tier reports from other major economies (ex. Germany’s GDP, U.S.’ retail sales release) can cause intraday spikes for AUD’s major pairs

Technical snapshot

  • Stochastic is showing AUD’s overbought conditions across the board on the daily time frame
AUD Forex Pairs Stochastic from MarketMilk
AUD Forex Pairs Stochastic from MarketMilk
  • EMAs reflect the Aussie’s short-term bearish trends against its major counterparts
  • AUD/NZD is still on its short and long-term bullish trend
AUD Forex Pairs EMAs from MarketMilk
AUD Forex Pairs EMAs from MarketMilk
  • AUD saw the most volatility against the safe-havens and the pound in the last seven days
AUD Forex Pairs Volatility from MarketMilk
AUD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read AUD’s price recap for Jan. 4 – 8!