• AUD/USD edges lower on Friday, though the intraday downtick lacks follow-through.
  • China’s COVID-19 woes weigh on investors’ sentiment and the risk-sensitive Aussie.
  • The prevalent USD selling bias lends support and limits the downside for the major.

The AUD/USD pair struggles to capitalize on its gains recorded over the past three trading sessions and retreats from over a one-week high touched earlier this Friday, after retesting the November 15-16 high in the 0.6780s. The pair trades with a mild negative through the early European session and is currently placed around the mid-0.6700s, though any further pullback seems elusive.

Worries about the worsening COVID-19 situation in China keep a lid on the recent optimistic move in the markets, which, in turn, acts as a headwind for the risk-sensitive Aussie. In fact, China announced strict curbs in several major cities in the wake of a record-high jump in daily COVID-19 cases. This, in turn, adds to concerns about a further slowdown in economic activity and tempers investors' appetite for perceived riskier assets.

The downside for the AUD/USD pair, however, remains cushioned, at least for the time being, amid the underlying bearish sentiment surrounding the US Dollar. The November Federal Open Market Commttee (FOMC) meeting minutes released on Wednesday revealed that a substantial majority of policymakers judged that a slowing rate hike would soon be appropriate. This leads to an extension of the recent decline in the US Treasury bond yields and continues to undermine the Greenback.

The mixed fundamental backdrop, meanwhile, warrants some caution before positioning for a firm near-term direction for the AUD/USD pair. Moreover, relatively thin trading volumes might further hold back traders from placing aggressive bets and support prospects for an extension of the consolidative price move on the last day of the week.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6755
Today Daily Change -0.0012
Today Daily Change % -0.18
Today daily open 0.6767
 
Trends
Daily SMA20 0.6568
Daily SMA50 0.6488
Daily SMA100 0.669
Daily SMA200 0.6938
 
Levels
Previous Daily High 0.6778
Previous Daily Low 0.6724
Previous Weekly High 0.6798
Previous Weekly Low 0.6634
Previous Monthly High 0.6548
Previous Monthly Low 0.617
Daily Fibonacci 38.2% 0.6757
Daily Fibonacci 61.8% 0.6745
Daily Pivot Point S1 0.6734
Daily Pivot Point S2 0.6702
Daily Pivot Point S3 0.668
Daily Pivot Point R1 0.6789
Daily Pivot Point R2 0.6811
Daily Pivot Point R3 0.6843

 

 

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