- Markets await data from the US this week.
- Australian house prices rose last year, rebounding significantly from a 5% fall in 2022.
- RBA raised rates in November last year by a quarter of a point to 4.35%.
The AUD/USD outlook changed on Tuesday as the dollar rose on the first day of the year. Traders focused on economic data, anticipating key insights into Fed policy. US data this week will include job vacancies and employment changes.
If you are interested in automated Forex trading, check out our detailed guide-
Additionally, traders will be looking at minutes from the Fed’s December meeting, which will be released on Thursday.
Meanwhile, Australian house prices rose last year, recovering significantly from a 5% decline in 2022. However, the RBA’s rate hikes and the country’s high cost of living weighed on growth in the latter part of 2023.
Property consultant CoreLogic released figures on Tuesday showing prices rose 8.1% in 2023. However, this increase was far below the 24.5% rise reported in 2021. Meanwhile, prices in December recorded the lowest growth since February, and amounted to 0.4%.
It is significant that RBA raised rates in November last year by a quarter of a point to 4.35%. This increase was due to concerns that inflation expectations could rise. Accordingly, interest rates in the country have risen by a significant 425 basis points since May last year.
Australian households are suffering as high inflation increases financial pressures. Notably, inflation peaked at 7.8% last December before falling to 5.4% in the third quarter. However, the RBA believes that the majority of borrowers in the country can service their mortgages.
AUD/USD key events today
No high-impact releases coming out of the US or Australia today. Therefore, the pair is likely to pause before the data is released tomorrow.
AUD/USD Technical Outlook: Bears break SMA after bearish RSI divergence
On the technical side, the AUD/USD bears have strengthened enough to break the 30-SMA support. The move comes after the RSI made a bearish divergence with the price as the bullish momentum weakened. Notably, the bullish trend started to weaken at the key level of 0.6725 as the trend slope became shallow.
If you are interested in guaranteed stop loss forex brokers, check out our detailed guide-
Finally, the trend stopped at the key level of 0.6850. Although the bulls tried to push above this resistance, the bears soon took over, sending the price below the SMA. At the same time, the RSI broke through the key mark of 50. However, the price is retesting 0.6850 before it is likely to decline further.
Do you want to trade Forex now? Invest in eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing money.
