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4075.17

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In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.

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      AUD/USD Holds Firm as Markets Scale Back RBA Rate-Hike Expectations

      Traders' Opinions
      Summary:

      AUD/USD remains stable near 0.7030 as persistent US Dollar weakness offsets disappointing Chinese PMI data. However, softer Australian inflation has significantly reduced expectations of another RBA rate hike, limiting further upside for the Aussie.

      Buy AUDUSD
      EXP
      Trading

      0.70150

      ENTRY

      0.71050

      TGT

      0.69200

      SL

      0.70435 +0.00176 +0.25%

      0

      Point

      Flat

      0.69200

      SL

      CLOSING

      0.70150

      ENTRY

      0.71050

      TGT

      The Australian Dollar held steady near 0.7030 on Friday after Thursday's strong rally, supported by continued weakness in the US Dollar. However, gains remained capped after weaker-than-expected Chinese economic data highlighted slowing demand in Australia's largest trading partner.
      China's NBS Manufacturing PMI unexpectedly slipped back into contraction territory at 49.2 in July from 50.3, while the Non-Manufacturing PMI also missed expectations, signaling broader weakness in the Chinese economy. The disappointing figures tempered optimism for the Aussie, given Australia's strong trade exposure to China.
      The US Dollar, meanwhile, remained under pressure following softer US economic data. Second-quarter US GDP expanded by 1.5%, slowing from 2.1% in the previous quarter and falling short of market expectations, reinforcing concerns about slowing economic momentum and weighing on the Greenback.
      Despite the weaker Dollar, expectations for further Reserve Bank of Australia tightening have eased significantly. Softer Australian inflation data has largely eliminated the likelihood of a rate hike at the August 11 policy meeting, limiting additional upside for the Australian currency.
      According to Deutsche Bank, Australia's second-quarter CPI rose 0.6% quarter-on-quarter, below the 0.7% forecast, while annual inflation eased to 3.8% from 4.0%. Core inflation also came in below expectations, prompting markets to sharply reduce the probability of another RBA rate increase. Following the data, Australian two-year government bond yields fell, with traders now pricing only a minimal chance of a rate hike next month.

      Technical AnalysisAUD/USD Holds Firm as Markets Scale Back RBA Rate-Hike Expectations_1

      AUD/USD has staged an impressive recovery after bouncing strongly from the 0.6950 demand zone, with buyers driving price back to the 0.7015–0.7020 resistance area. This region previously acted as a ceiling, making the current retest a pivotal moment for the pair.
      Price is now attempting to hold above the former resistance, which could turn into fresh support if buyers successfully defend it. A confirmed breakout and sustained close above 0.7020 would signal a continuation of the bullish recovery, opening the way toward the next resistance around 0.7100–0.7110.
      The recent impulsive rally suggests bullish momentum is strengthening, while the sequence of higher lows from the July bottom indicates that demand is gradually returning to the market. As long as price remains above the breakout zone, the near-term bias continues to favor further gains.
      However, if AUD/USD slips back below 0.7015 and fails to hold that level, the breakout would be invalidated. In that scenario, sellers could regain control and force a retracement toward the 0.6950 support area, where buyers are expected to step in once again.

      TRADE RECOMMENDATION

      BUY AUD/USD
      ENTRY PRICE: 0.7015
      STOP LOSS: 0.6920
      TAKE PROFIT: 0.7105
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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      Warren Takunda

      Analysts

      Warren Takunda, a seasoned finance leader specializing in the Middle East, is a trusted senior analyst with a proven track record. As head of the finance team, he excels in financial planning, analysis, and reporting. Warren's expertise in financial modeling and investment analysis delivers valuable insights to clients.

      Rank

      3

      Articless

      2813

      Win Rate

      63.52%

      P/L Ratio

      0.74

      Focus on

      XAUUSD, EURUSD, GBPUSD

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