Commodity Daily News

AUD/USD Recovering after 2.7% Drop

The AUD has clawed back following Wednesday's crash as the AUD was pulled lower with other higher yielding currencies. Employment data released yesterday showed a decline in the unemployment rate but new jobs added were in-line with consensus forecasts.

Recent Chinese data has also been supportive of the AUD with Chinese CPI falling to 5.5% in October. The drop in inflationary pressures dispels the theory of a hard landing for the Chinese economy and opens the door to potential easing of Chinese monetary policy. Yesterday's data showed China's trade balance widened but was below consensus forecasts which may signal further slowing of the Chinese economy.

For AUD/USD support and resistance, please see today's Wild Card section in the FOREXYARD Daily Analysis.