Is 74 line next for the Aussie?

The Australian dollar is calm in Monday trade. Currently, AUD/USD is trading at 0.7386, down 0.02% on the day.

Aussie posts excellent November

The Australian dollar gained 1.1% last week and has posted an outstanding November, with gains of 4.8%. The US dollar has been in a prolonged slump, and cyclical commodity currencies like the Australian dollar have taken full advantage and made strong gains against the greenback. The Aussie shrugged off soft Australian numbers last week, as Construction Work Done and Private Capital Expenditure declined in the second quarter, and both missed their estimates. With the US dollar index close to its yearly low, the upswing in AUD/USD is clearly a case of weakness in the US dollar rather than strength in the Australian currency.

It is a busy week for Australian fundamentals. There was encouraging news on the inflation front, as the Melbourne Institute Inflation Gauge climbed 0.3% in November, marking a 4-month high. As well, Company Operating Profits for Q3 posted a third straight gain with a reading of 3.2%, although this fell short of the estimate of 4.0%.

Investors will be carefully monitoring the RBA rate decision (Tuesday, 3:30 GMT). The RBA is expected to remain on the sidelines in the final policy meeting of the year. No change is expected in interest rate levels, after the RBA trimmed rates from 0.25% to 0.10%, a record low, at the November meeting. At that meeting, the RBA implemented QE for the first time ever, announcing purchases of A$100 billion in government bonds over the next six months. Although some recent economic indicators have been pointing downwards, Employment Change was unexpectedly high. The economy created 178.5 thousand jobs in October, crushing the estimate of -26.7 thousand. Job creation has looked sharp, with readings above 100-thousand in three of the past four releases. This provides the RBA with some breathing room from having to implement further easing measures to booster the economy. If the rate statement has a positive tone, the Aussie could pad its recent gains against the US dollar.


AUD/USD Technical

  • AUD/USD faces resistance at 0.7485. Above, there is resistance at 0.7569
  • We find support at 0.7301, followed by support at 0.7216
  • AUD/USD remains slightly above the 10-day MA line

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental and macroeconomic analysis, Kenny Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in major online financial publications including, Seeking Alpha and FXStreet. Kenny has been a MarketPulse contributor since 2012.