AUD/USD: Fizzles upside momentum below 0.7400 but bears await clear signals
- AUD/USD eases after refreshing the three-month top the previous day, downside have recently been confined though.
- US President Donald Trump said covid vaccine will be delivered from next week, AstraZeneca stops for additional trials.
- Chatters surrounding US-China relations, virus woes probe risk-on but absence of the US traders, light calendar elsewhere, limits the moves.
AUD/USD drops to 0.7356 during the initial Asian session on Friday. Even so, the pair fails to portray any major moves amid the absence of the US traders due to Thanksgiving Day as well as a light calendar elsewhere.
The same restricts the market’s reaction to US President Donald Trump’s announcement that the coronavirus (COVID-19) vaccine delivery will start from the next week. While the news should have ideally propelled the quote, news that AstraZeneca holds additional trials for its covid vaccine probed the optimists off-late.
It’s worth mentioning that the latest tussle between the US and China also occupies the negative stand for the AUD/USD traders. The US sanctions on four companies from Russia and China, citing linkages with the Iran missile program, join Beijing’s warning to US President-elect Joe Biden on his view for Taiwan. Additionally, an update suggesting that Washington and Beijing both are only halfway through the trade deal, despite passing 10 months of the agreement, also weigh on the risks.
Furthermore, the coronavirus updates and Brexit woes are an extra burden on the risk-tone sentiment. Figures from the US, mainly from Texas and California, suggest that the worst is yet to come while the global counts already cross 60 million. Elsewhere, speculations grew that the European Union’s (EU) Chief Brexit negotiator Michel Barnier will convey no progress in the fisheries talks to the bloc’s members on Friday.
Looking forward, the aussie pair is likely to trade sideways amid an absence of major catalysts on the calendar. Though, any major surprise from the risk news can entertain the traders.
Technical analysis
An ascending trend line from October 09, currently around 0.7400, precedes the yearly top surrounding 0.7415 to test the AUD/USD bulls. Alternatively, sellers are less likely to take risks unless witnessing a clear downside break below 0.7345/40 support zone comprising the highs marked since mid-September.
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.
