January Summary
- In January, the AUD/USD currency pair fluctuated between 0.6525 and 0.6839.
- The currency movement was largely influenced by comments from Federal Reserve officials regarding potential interest rate cuts.
- Market adjustments occurred due to premature expectations of rate cuts, leading to a significant re-pricing of yields.
- China’s efforts to boost its economy and confidence through stimulus measures, packages, and a Reserve Requirement Ratio (RRR) cut, along with key data releases like US CPI, PPI, and Australian employment and CPI, were notable developments.
Snapshot of the Month
- From a very simplistic technical perspective, the AUD/USD daily chart suggests a potential “head and shoulders” pattern with the pivotal neckline at 0.6525, indicating a bearish trend.
- A sustained break below 0.6525 could lead to a target of 0.6180, aligning with the lows seen in October 2022.
‘Head and Shoulders’ formation
Key Upcoming Dates
| 2nd Feb | US Non-Farm Payrolls |
| 6th Feb | RBA Rate Announcement |
| 8th Feb | China Inflation |
| 14th Feb | US Inflation |
| 15th Feb | Australian Employment |
| 28th Feb | NZ Rate Announcement |
Want to keep up to date with our CCY Wrap?
Follow our LinkedIn for daily market insights