AUD/USD hovers below 0.7200 as RBA’s Lowe cheers digital payments, China inflation eyed


  • AUD/USD grinds higher around two-week top, little changed on RBA Governor’s speech.
  • RBA’s Lowe teases retail digital currency, review crypto-assets, stablecoins.
  • Markets sentiment remains divided amid mixed concerns over Omicron, geopolitics and Beijing.
  • China CPI, PPI can offer immediate direction, risk catalysts are the key.

AUD/USD bulls take a breather following a three-day uptrend to a fortnight top, taking rounds to 0.7170 during early Thursday morning in Asia. Mixed updates concerning Omicron troubled the pair traders but cautious optimism saved the bulls.

That said, the risk barometer pair paid a little heed to the latest comments from RBA Governor Philip Lowe but keeps the previous day’s break of the key technical levels, suggesting the further upside is on the table.

RBA’s Lowe justified the title of his speech, “Payments: The Future?,” as he spoke nothing of the economy nor the Aussie central bank’s next move at the latest. The policymaker said, “Both the regulators and the government understand this and are seeking to put in arrangements that encourage innovation and competition and make sure we have a secure and efficient system.” RBA’s Lowe adds, “There is no strong public policy case for an RBA-backed retail digital currency but a policy case could emerge quickly as technology, consumer preferences change.”

Earlier in the day news broke that Australia’s Deputy Prime Minister Barnaby Joyce tested positive for coronavirus while he was on a trip to the US.

The Aussie pair cheered US dollar weakness and firmer equities as early studies showed that the South African covid variant, dubbed as Omicron, is comparatively less harmful than the previous variants of the virus. Adding to the optimism were headlines from Pfizer signaling strong immunity for those who had taken three shots of the vaccines and previously tested positive to COVID-19.

However, re-introduction of the virus-led activity restrictions in Germany, France and the UK joined the tussles between the US and Russia, as well as the Sino-American tensions, to weigh on the risk appetite, which in turn probes AUD/USD bulls.

It’s worth noting that firmer readings of the US Job Openings and Labour Turnover Survey (JOLTS) renewed hopes of the faster Fed tapering ahead of Friday’s US Consumer Price Index (CPI) and underpinned the US Treasury yields.

Amid these plays, the Wall Street benchmarks posted mild gains while the US 10-year Treasury yields grew 4.8 basis points (bps) by the end of Wednesday’s North American session. Further, gold prices dropped after refreshing the weekly top.

Moving on, China’s CPI and Producer Price Index (PPI) details for November will be the key for AUD/USD traders, considering Sino-Aussie trade ties. Amid the mixed forecasts and the People’s Bank of China’s (PBOC) readiness to safeguard the economy from financial and covid-linked risks, the pair is more likely to react positively to the outcome, except for any strong negative surprises.

In addition to China data, risk catalysts and second-tier US jobs figures may entertain the AUD/USD traders.

Technical analysis

AUD/USD stays above a six-week-old previous resistance line and the 100-SMA, respectively near 0.7100 and 0.7165. However, the RSI line touches the overbought territory on four-hour (4H) play, suggesting a pullback. Should bulls keep reins, the 0.7200 round figure may offer an intermediate halt during the run-up to 50% Fibonacci retracement (Fibo.) level of October-December downside, around 0.7275.

Additional important levels

Overview
Today last price 0.7173
Today Daily Change 0.0056
Today Daily Change % 0.79%
Today daily open 0.7117
 
Trends
Daily SMA20 0.7198
Daily SMA50 0.7318
Daily SMA100 0.7321
Daily SMA200 0.7492
 
Levels
Previous Daily High 0.7124
Previous Daily Low 0.7038
Previous Weekly High 0.7174
Previous Weekly Low 0.6993
Previous Monthly High 0.7537
Previous Monthly Low 0.7063
Daily Fibonacci 38.2% 0.7091
Daily Fibonacci 61.8% 0.7071
Daily Pivot Point S1 0.7062
Daily Pivot Point S2 0.7008
Daily Pivot Point S3 0.6977
Daily Pivot Point R1 0.7148
Daily Pivot Point R2 0.7179
Daily Pivot Point R3 0.7233

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains pressured towards 0.6900 on Australian jobs negative surprise

AUD/USD remains pressured towards 0.6900 on Australian jobs negative surprise

AUD/USD stays directed towards 0.6900 following a negative surprise in the Australian Employment Change data. Softer wage and jobs data will likely dissuade the RBA from aggressive tightening. Investors assess Fed minutes and US-Taiwan news. 

AUD/USD News

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD turns south after rejection at 1.0200 as risk-off flows dominate. US dollar finds demand, despite weaker yields and cautious Fed minutes. The euro looks vulnerable amid the deepening EU energy crisis and growth risks.

EUR/USD News

Gold keeps bearish potential intact towards $1,750

Gold keeps bearish potential intact towards $1,750

Gold price sees a dead cat bounce as the tide turns against bulls. Fed minutes, US-Taiwan geopolitical news and Chinese stimulus hopes lend support. XAU/USD bears need to crack the critical $1,755 level to extend the downside.

Gold News

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits. As a result, more market participants are likely to flock around the next support level, triggering another leg-up.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures