- AUD/USD seesaws near the highest levels since September 13.
- China Caixin PMI crosses market forecasts, prior data in November but signals activity contraction.
- Higher US inflation expectations, risk surrounding US-China relations also probe buyers.
- Dovish Fedspeak keeps sellers off the table unless the US data prints too strong numbers.
AUD/USD bulls take a breather around 0.6810, after refreshing the 13-week high, as concerns surrounding the US and China challenge the upside momentum during early Thursday. Also likely to have probed the Aussie buyers could be the cautious sentiment ahead of the key US data.
After posting downside official activity data the previous day, China’s Caixin Manufacturing PMI rose to 49.4 in November versus 48.9 market forecasts and 49.2 previous readings. Even so, the private activity gauge remains in the contraction region for the fourth consecutive month.
Earlier in the day, Australia’s Private Capital Expenditure dropped to -0.6% for the third quarter (Q3) versus 1.5% expected and -0.3% prior.
That said, a recent increase in the US inflation expectations, as per the 10-year and 5-year breakeven inflation rates per the St. Louis Federal Reserve (FRED) data, should have also probed the AUD/USD. On the same line were the downbeat comments from US National Security Adviser Jake Sullivan suggesting fresh challenges for the Sino-American optimists. The diplomat said, “The US sees China as a growing strategic threat.”
It should, however, be noted that the dovish comments from the Federal Reserve (Fed) officials, including Chairman Jerome Powell, joins softer US employment-linked data to keep the AUD/USD buyers hopeful. Also likely to signal the quote’s further upside could be the recently easing virus-led activity controls in China as the dragon nation reports the third day of declining daily infections after refreshing the record top.
Amid these plays, S&P 500 Futures print mild gains and the equities in the Asia-Pacific region grind higher by tracking Wall Street gains. Further, the US 10-year Treasury bond yields remain pressured around 3.62% after refreshing a two-month low the previous day.
Looking forward, the Fed’s preferred inflation gauge, namely US Core Personal Consumption Expenditure (PCE) Price Index for October, expected 5.0% YoY in October versus 5.1% prior, will be crucial for near-term directions. Also important to watch will be the monthly prints of the US ISM Manufacturing PMI for November, expected 49.8 versus 50.2 prior.
Unless breaking the downward-sloping trend line from mid-September, around 0.6765, the AUD/USD pair remains on the way to approaching September’s top surrounding 0.6915, quickly followed by the 200-DMA hurdle near 0.6925.
Additional important levels
|Today last price||0.6797|
|Today Daily Change||0.0009|
|Today Daily Change %||0.13%|
|Today daily open||0.6788|
|Previous Daily High||0.6801|
|Previous Daily Low||0.667|
|Previous Weekly High||0.6781|
|Previous Weekly Low||0.6585|
|Previous Monthly High||0.6801|
|Previous Monthly Low||0.6272|
|Daily Fibonacci 38.2%||0.6751|
|Daily Fibonacci 61.8%||0.672|
|Daily Pivot Point S1||0.6705|
|Daily Pivot Point S2||0.6622|
|Daily Pivot Point S3||0.6575|
|Daily Pivot Point R1||0.6836|
|Daily Pivot Point R2||0.6884|
|Daily Pivot Point R3||0.6966|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.