The AUD/USD exchange rate remained stable, establishing a bullish engulfing pattern following the release of China’s macroeconomic data on Monday. The asset increased to a peak of 0.6715 and is gradually approaching the year-to-date high of 0.6786. The increase stands at 4.55% from the lowest point recorded in November of the previous year. The AUD/USD exchange rate remained stable on Tuesday morning as market participants continued to respond to the most recent macroeconomic data from China, Australia’s largest trading partner. The report indicated a deceleration in the economy during the fourth quarter, with growth recorded at 4.5%, a decrease from the 4.8% expansion observed in the third quarter. The observed slowdown occurred concurrently with a decline in investments and the housing sectors.
Nonetheless, the nation successfully achieved its annual goal of 5%, bolstered by a significant increase in its trade surplus, which soared to more than $1.5 trillion last year. China’s trade volume holds significant importance for Australia due to the substantial quantity of goods it procures from the country. The forthcoming jobs report, scheduled for release this Thursday, will serve as a significant catalyst for the AUD/USD exchange rate. Economists anticipate that the forthcoming data will indicate a decline of 30,000 jobs in January, following a loss of 21.3k in the preceding month. The projections indicate that the unemployment rate is anticipated to increase to 4.4% in December, up from the prior figure of 4.3%, while the participation rate is expected to rise to 66.8%. The significance of these figures lies in the fact that the Reserve Bank of Australia considers them during its deliberations on interest rate adjustments.
Analysts anticipate that the RBA will maintain interest rates at 3.6% during its forthcoming meeting on February 3rd, given the persistently high inflation rate in the nation. The AUD/USD pair is poised to respond to the anticipated Supreme Court ruling regarding Donald Trump’s tariffs, expected to be released later on Tuesday. The daily timeframe chart indicates that the AUD/USD exchange rate has increased to 0.6715. It has consistently stayed above the 50-day Exponential Moving Average and the Supertrend indicator.
An ascending channel has been established, indicating that the uptrend remains in progress. A bullish engulfing candlestick has formed, consisting of a bullish candle that completely encompasses a bearish candle. This represents a typical bullish reversal candle. The pair is expected to maintain its upward trajectory as bulls aim for the next significant resistance at 0.6765, marking its peak for the year. An advance beyond that threshold will indicate further increases, possibly reaching the psychological mark at 0.6800.