Should we keep an eye on the direction of the rising Oceania currencies?
01.03.2022
- MIS Manufacturing Index
- Remarks by MPC Member Saunders (UK)
In yesterday's U.S. currency trading, the AUD/USD pair surged by approximately 110 pips from 0.715 to 0.726 as the Dollar Index fell slightly to 96.7.The AUD/USD pair is rising with momentum that threatens to reach its recent 4-hour high of 0.728, and since there is still room to reach the daily 200-day SMA, we will carefully assess whether this upward trend will continue while closely monitoring the situation in Ukraine.
European currencies are under pressure from the strengthening Australian dollar, causing the EUR/AUD pair to decline. The pair has formed a large bearish candle, falling from 1.558 to 1.541. On the daily chart, the EUR/AUD has been falling steadily without any pullbacks since the 7th of last month. If this downward trend continues, we need to carefully assess whether the pair will rebound at the support level around 1.536, which is the recent low on the weekly chart.
Today’s schedule includes the Turkish Manufacturing PMI at 16:00 CET, the Swiss Manufacturing PMI at 17:30 CET, the UK Manufacturing PMI and Mortgage Approvals at 18:30 CET, and the German Consumer Price Index (flash estimate) at 22:00 CET; followed by the Canadian GDP at 22:30 EST, the US Manufacturing PMI at 23:45 EST,U.S. ISM Manufacturing PMI, U.S. Construction Spending, at 03:30, remarks by UK MPC member Saunders, at 04:00, remarks by UK MPC member Mann, remarks by U.S. Atlanta Fed President Bostic, remarks by U.S. Cleveland Fed President Mester, and at 06:45 the following day, New Zealand Housing Construction Permits are scheduled to be released.We will be watching the Australian dollar’s upward trend while keeping geopolitical risks in mind.
Author: Keisuke Sakurai
