AUD/USD: Bulls keep 0.7400 on radars amid US dollar weakness

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.

Anil Panchal FXStreet

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.

additional important levels

Overview
Today last price	0.7368
Today Daily Change	6 pips
Today Daily Change %	0.08%
Today daily open	0.7362

Trends
Daily SMA20	0.7227
Daily SMA50	0.7179
Daily SMA100	0.7175
Daily SMA200	0.6846

Levels
Previous Daily High	0.7368
Previous Daily Low	0.7282
Previous Weekly High	0.734
Previous Weekly Low	0.7254
Previous Monthly High	0.7244
Previous Monthly Low	0.7002
Daily Fibonacci 38.2%	0.7335
Daily Fibonacci 61.8%	0.7315
Daily Pivot Point S1	0.7307
Daily Pivot Point S2	0.7252
Daily Pivot Point S3	0.7222
Daily Pivot Point R1	0.7392
Daily Pivot Point R2	0.7423
Daily Pivot Point R3	0.7477

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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