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AUD/USD climbs to fresh daily highs above 0.6830

  • Consumer confidence in December continues to deteriorate in Australia.
  • Hopes of US delaying China tariff hike helps antipodeans find demand.
  • FOMC is expected to keep its policy rate unchanged on Wednesday.

The AUD/USD pair fluctuated in a tight range above the 0.6800 handle during the Asian trading hours on Wednesday before starting to push higher ahead of the American session. As of writing, the pair was trading at a fresh daily high of 0.6833, adding 0.35% on a daily basis.

AUD buoyed by renewed trade optimism

Earlier in the day, the data from Australia showed that consumer sentiment weakened in December with the Westpac Consumer Confidence Index dropping to -1.9% from 4.5% in November and coming in worse than the market expectation of -0.7%. Nevertheless, the AUD largely ignored the disappointing reading and continued to stay resilient against its American counterpart.

Heightened hopes of the US delaying the December 15 tariff hike on Chinese imports seem to be helping risk-sensitive antipodeans find demand ahead of key macroeconomic events.

At the beginning of the American session, the Consumer Price Index (CPI) data from the US will be watched closely by investors. More importantly, the Federal Reserve will publish its updated economic projections alongside the monetary policy statement following its two-day meeting.

Although the FOMC is unlikely to cut its policy rate, the policy outlook for 2020 and FOMC Chairman Powell's comments could provide fresh clues regarding the possibility of one more rate cut in the short-term and cause the US Dollar Index, which was last seen moving sideways near 97.50, fluctuate wildly.

Technical levels to watch for

AUD/USD

Overview
Today last price0.6834
Today Daily Change0.0021
Today Daily Change %0.31
Today daily open0.6813
 
Trends
Daily SMA200.6808
Daily SMA500.6816
Daily SMA1000.6808
Daily SMA2000.6912
 
Levels
Previous Daily High0.6838
Previous Daily Low0.68
Previous Weekly High0.6863
Previous Weekly Low0.6762
Previous Monthly High0.6929
Previous Monthly Low0.6754
Daily Fibonacci 38.2%0.6814
Daily Fibonacci 61.8%0.6823
Daily Pivot Point S10.6796
Daily Pivot Point S20.6778
Daily Pivot Point S30.6757
Daily Pivot Point R10.6834
Daily Pivot Point R20.6855
Daily Pivot Point R30.6873

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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