AUDUSD Insight

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Key Points
- According to foreign media reports, President-elect Trump’s economic team is reportedly considering a gradual increase in tariffs by 2–5% per month, interpreted as a strategy to minimize a sharp rise in inflation.
- The market has shown relief regarding inflation after both the December PPI headline and core figures came in significantly below expectations, shifting focus to the upcoming CPI.
- Concerns over stagflation risks and rising fiscal deficits persist as the yield on the UK’s 30-year government bond reaches its highest level since 1998.
- In Australia, November retail sales rose 0.8% month-on-month, marking the largest increase in 10 months, while November CPI reached 2.3%, nearing the target range and raising expectations for a rate cut in February.

Major Economic Events This Week
+ January 15: UK December Consumer Price Index (CPI), US December Consumer Price Index (CPI)
+ January 16: UK November GDP, Germany December Consumer Price Index (CPI), US December Retail Sales
+ January 17: UK December Consumer Price Index (CPI)

AUDUSD Chart Analysis
Recently, the AUD/USD pair has experienced significant downward pressure due to the US dollar's strength and rising expectations of a rate cut by the Reserve Bank of Australia. During this decline, the pair broke below the 0.62000 level. However, it has since rebounded, recovering to around the 0.62000 level as it finds support.

That said, the upward movement may be short-lived, with a high likelihood of continuing its downward trend toward the 0.60000 level after confirming a peak.

If the upside momentum unexpectedly strengthens, I will quickly adjust the strategy accordingly.

Disclaimer

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