- AUD/USD sideways around 0.7350, consolidating at 12-week highs.
- Aussie's rally loses steam as risk appetite falters.
- The Australian dollar looks ready to break 0.7400 – UOB.
Australian dollar’s pullback from intra-ay highs at 0.7375 seen on Wednesday’s early trading has been contained at 0.7325, before bouncing up to 0.7360 area. At the moment of writing, the pair is practically unchanged on the day consolidating at its highest levels since early September.
The aussie loses steam as risk appetite falters
The risk rally witnessed earlier this week has vanished on Wednesday, which has favoured the US dollar against the risk-sensitive AUD. Market enthusiasm about the positive news about AstraZeneca’s COVID-19 vaccine and Janet Yellen’s nomination as the next treasury secretary seems to have ebbed with the investors shifting their focus towards the deteriorating macroeconomic data.
US Weekly Jobless Claims increased to 778,000 in the week of November 20, well above the 730.000 reading expected by the market. This is the second consecutive increase in unemployment applications, something that did not occur since July, which reveals that the coronavirus infections and lockdowns are started to bite into the labour market.
Furthermore, the second estimate of Q3 US GDP has remained unchanged, at 33.1%, slightly below the 33.2% expected by the market. On the other hand, US Durable Goods’ Orders increased 1.3% in October, beating expectations of a 0.9% rise.
AUD/USD looks ready to break 07400 - UOB
From a technical point of view, the FX Analysis Team at UOB maintains the positive outlook on the pair, aiming to levels beyond 0.7400: “Despite the relatively choppy price actions, upward momentum appears to be strong and AUD is expected to move higher even though the year-to-date high at 0.7413 is likely out of reach (there is a minor resistance at 0.7400). On the downside, a breach of 0.7320 would indicate the current upward pressure has eased (minor support is at 0.7340).”
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.