30 May 2025,05:04
Daily Market Analysis
30 May 2025, 05:04
Key Takeaways:
*Australian dollar hammered by the latest Retail Sales Reading that came short.
*RBA’s recent dovish tone has also hindered the Aussie dollar.
The Australian dollar (AUD) continues to grapple with significant headwinds, driven by a confluence of underwhelming domestic economic indicators and evolving monetary policy dynamics. The latest retail sales data, registering a contraction of 0.1% month-on-month, marks the weakest performance since February, underscoring persistent softness in consumer spending. This disappointing figure has amplified concerns about the resilience of Australia’s economic recovery, particularly in the face of escalating global trade uncertainties.
In its recent monetary policy decision, the Reserve Bank of Australia (RBA) signaled heightened caution regarding the nation’s growth outlook, opting to reduce the cash rate by 25 basis points to a new low. This move aims to provide a buffer against external pressures, including volatile global trade conditions and geopolitical tensions, which have clouded the economic horizon. The RBA’s dovish pivot, while anticipated by markets, has intensified bearish sentiment toward the AUD, as investors recalibrate expectations for further monetary easing.
Compounding these challenges, the broader economic data landscape has offered little respite. Subpar performances across key indicators, including retail sales and business confidence, have further eroded market confidence in the AUD. The currency’s recent depreciation reflects not only the RBA’s accommodative stance but also the mounting pressure from lackluster domestic fundamentals.
The GBPAUD pair has continued its bullish trajectory in May, gaining over 2.3% month-to-date while maintaining a consistent higher-high and higher-low pattern. The technical structure reinforces a bullish bias, with the pair now approaching a key resistance at the 2.1100 level. A confirmed breakout above this threshold would mark a new monthly high and signal further upside potential.
Momentum indicators continue to support the bullish view. The Relative Strength Index (RSI) has remained firmly above the 50 mark for several weeks, reflecting sustained buying pressure. Meanwhile, the MACD holds above the zero line, indicating that bullish momentum remains intact.
With bullish sentiment prevailing and momentum indicators aligned, the pair could extend gains toward the next psychological resistance, particularly if it breaches 2.1100 decisively. However, traders may remain cautious of potential pullbacks should the pair face exhaustion near resistance.
Resistance Levels: 2.1100, 2.1270
Support Levels: 2.0900, 2.0670
Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.
This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.
This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.
PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
