The US Dollar is like Alice in Wonderland falling down the rabbit hole. Will someone or something help USD today? We are not so sure.
Even if the US data brings a positive surprise, would it be enough to help USD? Let's not forget that one of the main maintaining factors for the buck - the probability of a rate hike in December – is almost fully priced in. Does the dollar possess any other trump card (and by “trump” we don’t mean just one from the pack of cards)?
Nevertheless, AUD distinguished itself today. In the morning, the currency lost almost 0.6%. AUD/USD broke the very important support level in the 0.7600 area. The Aussie was really disappointed with the wages data. The RBA repeated in all sharps and flats it was not ready to tighten the monetary policy anytime soon. Its cautious stance is quite understandable, in spite of the overheated job’s market. And, you know, the incoming data confirms the regulator is right.
The Aussie is near July’s lows. Here it found a solid support. The break out of the 0.76 round figure will be a bearish signal. Under this scenario, AUD/USD should recover to the previous range, otherwise, the pair may fall towards May’s lows at 0.7400.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.