AUD/USD clings to gains above 0.7100 after reaching a 7-month high around 0.7140s AUDUSD Majors Currencies
Therefore, the AUD/USD is trading at 0.7109, slightly above the opening price.US economic data, particularly growth, has been the main driver of Thursday’s session, surpassing expectations of 2.6% QoQ, as the Gross Domestic Product rose 2.
.9% in Q4, as the Department of Commerce reported. That, alongside Q3’s expanding 3.2%, bolstered the US Dollar , which has been treading water on the week. For 2022, the economy grew by 2.1%, lower than in 2021, 5.9% YoY. In other data also revealed by the US Commerce Department, Durable Good Orders for December grew 5.6% MoM, recovering from November’s -2.1% contraction. However, the report was mixed as core Durable Goods dropped -0.2% MoM. Higher interest, attributed to the US Federal Reserve lifting rates by 425 bps since March 0f 2022, are weighing on demand for goods, usually bought on credit. Elsewhere, the jobs market continues to show resilience, as the US Department of Labor reported that Initial Jobless Claims for the week ending January 21 fell to 186K, below estimates of 205K. Given the backdrop, the AUD/USD retreated once headlines crossed newswires after hitting a daily high and failed to hold to the R1 daily pivot point at 0.7139. So the AUD/USD pair lost traction and dived, but the daily pivot point capped its fall at 0.7085. In the meantime,, which tracks the greenback’s value against a basket of six peers, is erasing Wednesday’s losses and rising 0.19%, up at 101.829, a headwind for the AUD/USD. On the Australian side, a hotter-than-expected inflation report for December keeps investors assessing the next move for the Reserve Bank of Australia . Sources cited by Reuters said, “Today’s report should quickly eradicate hopes of an pause in February.” Therefore the Australian Dollar might continue to hold its ground as higher interest rates are coming, while China’s reopening will augment commodities demand.Therefore, the AUD/USD might continue its uptrend, albeit trimming some of its gains. Achieving a daily close above 0.7100 exacerbated an upward move towards a fresh 7-month high, keeping bulls hopeful of testing the 0.7200 mark. However, on its way north, the AUD/USD needs to clear 0.7142, followed by 0.7150, and then the 0.7200 psychological figure. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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