AUD/USD probes intraday top near 0.7550 on RBA minutes, focus on China data
- AUD/USD remains in the recovery mode as RBA rekindles readiness to ease.
- Risks remain dicey as Sino-Aussie tussles, Biden’s US victory entertain traders off-late.
- Brexit, virus woes and stimulus updates keep the driver’s seat.
- China Industrial Production, Retail Sales will offer immediate direction.
AUD/USD stays firm near the day’s high of 0.7546, up 0.14% intraday, during the early Tuesday’s The pair recently reacted to the minutes of the RBA’s December meeting. However, the buyers are chained amid mixed signals concerning the risks.
RBA minutes repeated the policymakers’ tune of “wait and watch”, as widely expected after November’s action. Though comments like, “latest policy easing had kept A$ lower than otherwise would be,” ignore the odds of further easing and helps the quote. Also on the positive side could be the comments from the RBA policymaker, Jonathan Kearns, who recently said that the Australian banks better prepared than they were pre-GFC (Great Financial Crisis).
Read: RBA Minutes: Sees lowering unemployment as national priority
Before the RBA minutes, Aussie Trade Minister Simon Birmingham explained that the nation has seen a pattern of disruption about Australian coal from China. This rekindles the trade tension between Canberra and Beijing and challenges the risk.
On the contrary, Joe Biden’s ability to get the 270 votes, with the latest Electoral College victory, gives rise to hopes of sooner covid stimulus from America. Also backing the bulls are the hopes that the coronavirus (COVID-19) vaccine will help overcome the pandemic.
It should be noted that the latest local lockdowns in Europe and the US, coupled with fears of a new variant of the COVID-19 conveyed by the UK, challenge the optimists amid the looming risk of a no-deal Brexit.
Against this backdrop, S&P 500 Futures rise 0.25% whereas Australia’s ASX 200 and Japan’s Nikkei 225 declines by 0.30% by press time.
Moving on, China’s November month Retail Sales and Industrial Production will offer immediate direction while risk catalysts will keep the driver’s seat.
Read: When are the RBA minutes, China data dump and how might they affect AUD/USD?
Technical analysis
AUD/USD sellers are less likely to enter before breaking a six-week-old ascending trend line, at 0.7447 now. However, overbought RSI conditions keep hammering the bulls targeting the June 2018 peak near 0.7675/80.
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.
