- AUD/USD drifts lower for the second straight day, though lacks follow-through selling.
- A softer risk tone is seen as a key factor undermining the risk-sensitive Australian Dollar.
- The better-than-expected release of China Caixin Services PMI does little to impress bulls
- Dovish Fed hopes undermine the USD and lend some support ahead of the RBA decision.
The AUD/USD pair remains under some selling pressure for the second straight day on Tuesday and reacts little to the better-than-expected release of Chinese data. Spot prices currently trade around the 0.6615-0.6610 region, down less than 0.10% for the day, as traders keenly await the Reserve Bank of Australia (RBA) policy decision.
A private survey showed that business activity in China's services sector grew at a faster pace in November. China's Caixin Services PMI accelerated to 51.5 during the reported month from 50.4 in October, beating expectations for a reading of 50.8. This, however, does little to influence the AUD/USD pair or provide any meaningful impetus amid a generally softer risk tone, which tends to undermine the risk-sensitive Australian Dollar (AUD).
Meanwhile, dovish Federal Reserve (Fed) expectations keep a lid on the recent US Dollar (USD) recovery from a multi-month low. This, in turn, helps limit the downside for the AUD/USD pair ahead of the key central bank event risk. The RBA is widely expected to keep interest rates on hold. Hence, investors will look for cues about future rate hikes, amid some stickiness in Australian inflation, before placing fresh directional bets around the major.
Later during the early North American session, traders will take cues from the release of the US ISM Services PMI. This, along with the US bond yields and the broader risk sentiment, will drive demand for the safe-haven buck and allow traders to grab short-term opportunities around the major.
Technical levels to watch
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
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.