🌟 Australian Dollar Holds Gains as US Dollar Weakens Ahead of ISM Manufacturing PMI 🌟
📌 Key Highlights
📈 AUD Strengthens: The Australian Dollar (AUD) extends its rally against the US Dollar (USD) for the second consecutive session.
💡 PBoC Signals Rate Cuts: Reports suggest that the People's Bank of China (PBoC) may lower interest rates in 2025, boosting AUD sentiment.
🛢️🌟 Commodity Prices Surge: Stronger Oil and Gold prices provide critical support to the AUD, benefitting Australia's export-driven economy.
📊 ISM PMI in Focus: Market participants await the ISM US Manufacturing PMI report for December 2024, a key economic indicator.
📌 Global Market Drivers
🌏 China’s Economic Outlook:
The National Development and Reform Commission (NDRC) projects steady economic recovery in 2025.
Increased funding from ultra-long treasury bonds aims to support infrastructure and consumption.
📉 US Dollar Index (DXY):
Corrected from a multi-year high of 109.56, reflecting subdued momentum.
Lower-than-expected US jobless claims support USD in the short term.
📌 Technical Insights
Resistance Levels:
Immediate: 0.6220 (9-day EMA)
Key: 0.6300 (descending channel’s upper boundary)
Support Levels:
Short-term: 0.6020 (descending channel’s lower boundary)
📌 Additional Notes
Australian Exporters Rally: Companies like Woodside Energy and Northern Star Resources show gains amid stronger commodity prices.
RBA Stance: Reserve Bank of Australia (RBA) Governor Michele Bullock emphasizes a cautious monetary easing approach due to a robust labor market.
🔎 Market Watch:
Traders remain cautious about geopolitical risks and global growth concerns, influencing safe-haven currencies like the USD.
A positive ISM PMI could challenge AUD's momentum, while weaker-than-expected data may bolster its upward trajectory.
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