November 24, 2021
AUD/USD: The Australian dollar fell against the U.S. dollar due to the general strength greenback on Wednesday. U.S. macroeconomic data showed the hottest U.S. inflation reading in a generation. Traders suggest if prices keep running higher, the Federal Reserve will step in to hike interest rates. The U.S. data showed price rises extending into rents, which could drive pressure on wages. At night Australia has published jobs figures which turned out worse than market expectations. The Australian Employment Change defied a rise of 50 thousand forecasts and showed falling on 46 thousand new jobs. The Unemployment Rate rose and was worse than market expectations. But at the same time, the Aussie Consumer Inflation Expectations for November jumped to 4.6%. Further U.S. dollar rises likely depend on clues about the Fed’s next moves and whether the inflation jump puts a broader weight on the market mood.
USD/CAD: The U.S. dollar rose against the Canadian dollar yesterday due to falling oil prices and U.S. inflation figures. Oil is one of Canada’s major exports, so its prices affect the loonie. The U.S. also increased pressure on oil markets, with President Biden asking his economic advisors to explore ways to lower energy prices. There is growing speculation that the U.S. might coordinate inventory releases with other nations, such as Japan. The local support level can be seen at 1.2485. If the price returns to this level and rebounds from it, it can be considered as a trigger to further growth towards 1.2560.
WTI: Oil prices fell due to the rising US dollar after the US President requested the administration to look for ways to reduce energy costs. Some of the efforts to cut energy costs might include releasing more crude from the US Strategic Petroleum Reserve. According to the Energy Information Administration data, U.S. crude stock stocks rose last week after the SPR injection while inventories of gasoline and distillates like diesel declined further. Crude inventories rose by 1 million barrels in the week to November 5 that was better than market expectations. The local support level can be seen at $80.75. A breakout below could take the pair to a short purpose towards $78.35.