AUD/USD pulls back from 200-DMA amid mixed trade/political headlines


  • AUD/USD looks for clear direction amid cautious optimism.
  • US President Trump’s trade-positive statements fail to defy broad political tension.
  • US data will be in focus for intermediate direction, holiday mood to limit market moves.

AUD/USD seesaws around 0.6900 after failing to cross 200-DMA during the week-start run-up. Phase-one optimism falls short of overcoming political pessimism concerning the US-China, US-North Korea and in the Middle East.

Aussie traders initially cheered US President Donald Trump’s comments saying, "We've just achieved a breakthrough on the trade deal and we will be signing it very shortly." However, the Republican leader’s signing of the Defense Authorization Bill pushed the Chinese President Xi Jinping to warn the US to stay out of their internal matters.

The pair might also have taken care of weaker than expected 0.3% print of November month Australian Private Sector Credit to 0.1%.

Risk sentiment also gets heavy as the New York Times came out with the news stating that the US military & intelligence officials are tracking North Korea's actions by the hour & bracing themselves for a major imminent missile test.

Furthermore, news from the Syrian State Television that Israel airstrikes target Iran-linked military base in Syria exerted additional downside pressure on the market’s risk tone.

With this, the US 10-year Treasury yields step back to 1.91% whereas S&P 500 Futures stay mostly unchanged at 3,227.

Although a lack of major data/events and a year-end trading lull may hinder market sentiment, the US Durable Goods Orders, Chicago Fed Manufacturing Activity Index and New Home Sales can offer intermediate moves to entertain traders on Monday.

Technical Analysis

Buyers look for a daily closing beyond 200-Day Simple Moving Average (DMA) level of 0.6905 to challenge the monthly top near 0.6940. Alternatively, a monthly trend line, at 0.6855, restricts near-term declines of the pair.

Additional important levels

Overview
Today last price 0.6899
Today Daily Change -2 pips
Today Daily Change % -0.03%
Today daily open 0.6901
 
Trends
Daily SMA20 0.6838
Daily SMA50 0.6838
Daily SMA100 0.6808
Daily SMA200 0.6905
 
Levels
Previous Daily High 0.6908
Previous Daily Low 0.6882
Previous Weekly High 0.6908
Previous Weekly Low 0.6838
Previous Monthly High 0.6929
Previous Monthly Low 0.6754
Daily Fibonacci 38.2% 0.6898
Daily Fibonacci 61.8% 0.6892
Daily Pivot Point S1 0.6886
Daily Pivot Point S2 0.6871
Daily Pivot Point S3 0.686
Daily Pivot Point R1 0.6912
Daily Pivot Point R2 0.6923
Daily Pivot Point R3 0.6938

 

 

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