The Australian Dollar (AUD) losses ground against the US Dollar (USD) for the third consecutive session on Tuesday. Proposed tariff increases on Chinese goods by US President-Elect Donald Trump could negatively impact the AUD, as Australia is one of China’s largest exporters.Australia’s Westpac Consumer Confidence index rose by 5.3% to reach 94.6 points in November, marking its second consecutive month of improvement and the highest level in two and a half years. However, the index has remained below 100 for nearly three years, reflecting that pessimists still outnumber optimists.Matthew Hassan, Senior Economist at Westpac, noted, “Consumers are feeling less pressure on their family finances, are no longer worried about further interest rate rises, and are increasingly confident in the economic outlook.”The US Dollar continues to strengthen following the US election results that confirmed Trump’s victory. Analysts suggest that if Trump’s fiscal policies are implemented, they could boost investment, spending, and labor demand, raising inflation risks. This scenario might prompt the Federal Reserve (Fed) to adopt a more restrictive monetary policy, potentially strengthening the Greenback and putting added pressure on the AUD/USD pair.Traders await the US inflation data release on Wednesday for insights into future US policy. The headline Consumer Price Index (CPI) is expected to show a 2.6% year-over-year increase for October, while the core CPI is projected to rise by 3.3%.
Daily Digest Market Movers: Australian Dollar struggles amid concerns over Trump’s potential tariff
Technical Analysis: Australian Dollar remains below the nine-day EMA near 0.6600
The AUD/USD pair trades around 0.6570 on Tuesday. An Analysis of the daily chart shows short-term downward pressure, as the pair remains below the nine-day Exponential Moving Average (EMA). Furthermore, the 14-day Relative Strength Index (RSI) consolidates below the 50 level, reinforcing the bearish outlook.On the support side, the AUD/USD pair could test its three-month low of 0.6512, recorded on November 6. Further key psychological support is at 0.6500. To the upside, immediate resistance is found at the nine-day EMA at 0.6596, followed by the 14-day EMA at 0.6609. A break above these EMAs might push the AUD/USD pair toward its three-week high of 0.6687, with the next psychological target at 0.6700.
AUD/USD: Daily Chart
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the New Zealand Dollar.
More By This Author:GBP/JPY Maintains Position Above 198.00 After LDP Ishiba Re-Elects As Japan Prime Minister Silver Price Forecast: XAG/USD Falls Toward $31.50 Amid Improved US Dollar, Yields EUR/USD Hovers Around 1.0750 With Negative Bias Amid Trump Trades
