14th January 2022 - AUD/USD approaches 0.7300 amid a risk-off market mood

Market Headlines

The market stabilized, with the greenback consolidating losses on Thursday. Risk appetite receded, preventing the dollar from falling further. Intraday gains of the US Dollar helped correct oversold conditions reached after Wednesday's sell-off. The Federal Reserve's hawkishness was pretty much priced in ahead of the release of US inflation figures, with three rate hikes anticipated for this year and chances of a balance sheet runoff before the year-end, resulting in the report triggering the opposite-than-usual reaction to skyrocketing prices pressure.

US government bond yields ticked higher but were unable to retain gains, ending the day barely up. Wall Street, on the other hand, was incapable of extending its gains, with most indexes posting modest intraday losses.

Today will be quite a busy day, as the UK will publish its November Gross Domestic Product and Manufacturing Production for the same month, while the US will offer December Retail Sales and the preliminary estimate of the January Michigan Consumer Sentiment Index.

Overnight Currency Range

AUD/USD 0.7274 0.7314

EUR/USD 1.1436 1.1482

GBP/USD 1.3698 1.3749

USD/JPY 114.00 114.70

NZD/USD 0.6844 0.6890

USD/CAD 1.2454 1.251

USD/CNH 6.3575 6.3685

AUD/JPY 83.00 83.74

AUD/NZD 1.0600 1.0629

AUD Thoughts

The AUD/USD traded in a 0.7274/.7314 range overnight and resistance can still be found ahead of 0.7340 and again at 0.7430. Demand has grown but remains back toward 0.7200.

Event Risk Data Today

AU – November home loans

UK – November GDP & November Industrial production

FR & ES – December CPI

US – December industrial production, December Retail sales & January Uni of Michigan sentiment

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