- AUD/USD eases from the fresh high since September 02.
- Downbeat US data favors greenback weakness, the market puts a brake on risk rally.
- Aussie Construction Work Done weakened in Q3, FOMC minutes highlight December meeting.
- Aussie Private Capital Expenditure for the third quarter eyed, risk news remains as the key.
AUD/USD bulls catch a breather around a nearly three-month high of 0.7374, currently at 0.7368, as the Asian session begins for Thursday’s trading. Despite the recent pause in risk-on mood, the quote cheers the US dollar’s weakness while probing the multi-day high.
Too many battles but no victory for the greenback…
Despite a plethora of economics scheduled for release on Wednesday, the USD couldn’t cheer any of them as most figures came out as mixed. Among them, upbeat prints of October’s Durable Goods Orders couldn’t supersede soft Q3 GDP and disappointing Weekly Jobless Claims figures. As a result, the US dollar index (DXY) dropped to the fresh low since September 01 the previous day.
Elsewhere, monetary policy meeting minutes of the latest FOMC conveyed that the policymakers aren’t in a hurry to announce adjustments to the pace and composition of asset purchases. Though, their emphasis on such a move hasn’t gone off the table, which in turn highlights December month’s meeting.
Talking about the risks, bulls seemed to catch a breather after cheering too much on US President-elect Joe Biden’s power shift and the coronavirus (COVID-19) vaccine news. That said, Wall Street benchmarks closed mixed while the US 10-year Treasury yields managed to avoid a negative daily closing, at 0.88% now, by the end of Wednesday.
Looking forward, AUD/USD traders may keep their eyes on Australia’s third-quarter (Q3) Private Capital Expenditure (CAPEX), expected -1.5% versus +5.9% prior, for immediate direction. However, major attention will be given to the risk updates from the US, covid/vaccine data and trade/political factors.
Technical analysis
Sustained trading beyond the mid-September tops near 0.7345 enables the AUD/USD buyers to target the monthly peak surrounding 0.7415 and then to eye July 2018 top around 0.7485. Meanwhile, November 17 high adds to the downside filter while highlighting 0.7345/40 as nearby key support.
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