- The AUD/USD pair once again managed to rebound from the 0.6775-70 region.
- A modest pickup in the US bond yields underpinned the USD and capped gains.
- Mostly upbeat US macro releases remained supportive of a mildly positive USD.
The AUD/USD pair held on to its mildly weaker tone below the 0.6800 handle and had a rather muted reaction to the latest US macro data.
Heading into Wednesday's important US economic releases, the pair did manage to find some support near the 0.6775-70 horizontal zone, or over one-month lows amid growing optimism over a possible US-China trade deal.
The uptick, however, lacked any strong bullish conviction and ran out of steam ahead of the 0.6800 handle in the wake of a modest pickup in the US dollar demand, this time backed by rebounding US Treasury bond yields.
The greenback remained well supported by an upward revision of the third-quarter GDP growth figures, which showed that the economy expanded at an annualized pace of 2.1% as compared to 1.9% estimated originally.
Adding to this, the US Durable Goods Orders recorded an unexpected growth of 0.6% in October as against a fall of 0.8% expected and the previous month's downwardly revised reading of -1.4% (-1.1 reported previously).
Excluding transportation items - core durable goods orders – also bettered market expectations and came in to show a rise of 0.6% during the reported month as against 0.1% expected and the previous month's fall of 0.4%.
Meanwhile, the USD bulls failed to capitalize on the positive reading and refrained from placing any aggressive bets, which eventually might turn out to be one of the key factors helping limit any further downside.
Technical levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.