Australian S&P Global PMI data hasn’t changed the AUD/USD exchange rate. The price goes up and down near 0.6640. When offers came in below 0.6580, the major went up.
From a technical point of view, the AUD/USD currency pair is about to drop. At 0.6855, the pair is close to the 61.8% retracement of the last day’s rise. At 0.6960, where the 20 SMA crossed over the current level, it met up with Fibonacci resistance. Bearish slopes on technical indicators show that there is a lot of interest in selling.
Global stocks continue to decline. As double-digit inflation rises in some countries, central banks around the world tighten their monetary policies. On Wednesday, the Fed rates went up by 75 basis points. The Summary of Economic Projections (SEP) shows that Fed policymakers expect another 120 bps worth of rate hikes, which would bring the federal funds rate (FFR) to 4.4% by the end of the year.
The Labor Department said Thursday that the number of jobless claims in the US rose by 213,000 last week, which was less than what was expected (217K), but more than the previous number (208K). After the first week, 22,000 fewer people were getting benefits in the week ending September 10, 2010.
In the absence of Australian economic data, traders were able to look at RBA minutes. The central bank said it didn’t have a “set path” and would try to keep the economy in balance. As the cash rate goes up, most RBA board members are thinking about slowing down rate hikes.
Analysts at Westpac think that the RBA will raise rates by 50 basis points in October, and 25 basis points in November, December, and February bringing them to 3.6%.
On Friday, S&P will release its Manufacturing, Services, and Composite PMIs.
The S&P Global PMIs will come after the speech by Fed Chair Jerome Powell at 18:00 GMT.