Listen to the latest market mood for the AUDUSD pair.
Asian equity markets traded mostly higher and US equity futures were supported by Alphabet earnings announcements out of hours which topped market expectations. The Dollar index remained below 100 which later acted as resistance and market participants are kept tentative heading into month end with US GDP and the FOMC announcement scheduled later today.
The AUD and the NZD were supported by the risk on mood and the rebound in oil after New Zealand trade figures was firmer than expected and Australian CPI showed headline Y/Y inflation increase to 2.2% from 1.8%.
- Therefore, with USD weakness and AUD strength we are expecting AUDUSD buyers from pullbacks.
- We expect this outlook to play out over the next 6-12 months.
- The main risk to this outlook remains to be any very negative coronavirus news which would give the market a ‘V’ shaped recovery. Also be aware that the US FOMC meeting is a major risk event later today at 18:00 GMT.