AUD/USD is recovering on Friday, retreating farther from the historic lows of April 2020. After Thursday's release of the US inflation report, the pair first collapsed to 0.6170 and then quickly began to recover.
For September, core U.S. inflation rose to 6.6% from 6.3%, with a forecast of 6.5%. Australia's inflation figure was unchanged at 5.4%.
China's inflation report came out today. Over the month the consumer price index rose 2.8% (y/y) or 0.3% (m/m). The producer price index slowed from 2.3% to 0.9%. Although the People's Bank of China is in no hurry to raise rates, its policy is producing the desired results.
The head of the World Bank predicts a global recession as early as 2023. Moreover, David Malpass believes that 7% of the world's population, approximately 570 million people, will fall into extreme poverty.
AUD/USD Technical Analysis
After multidirectional momentum moves, the major forex indicators for the Daily are giving out conflicting signals. The Bollinger Bands are still pointing down while the MACD has turned upward, though it remains in a negative range. Stochastic Oscillator is rising.
After a break above 0.6362, we open long positions with Take Profit at 0.6522. We will set a protective stop at 0.6280.
If the pair fixes below support at 0.6250, we will get a signal to start selling towards 0.6140. Stop-loss is set at 0.6310.
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