- AUD/USD pulls back from the seven-week low marked on Thursday.
- Doubts over phase-one deal keep the Aussie under pressure, US Thanksgiving restricted the losses.
- Traders wait for Australia’s HIA New Home Sales, Private Sector Credit amid less active markets.
AUD/USD pulls back from October 17 low to 0.6770 amid initial Friday trading in Asia. Pessimism surrounding the trade relations between the United States (US) and China recently weighed on the market sentiment. Investors look for second-tier data from Australia, amid less volatile market hours, for fresh impulse.
The US passage of Hong Kong law received wide criticism from China and Hong Kong. However, the market reaction to the same was confined due to the Thanksgiving Day holiday in the US. Also, comments from China’s State Council that the dragon nation will properly resolve trade frictions, will step up punishment for intellectual property infringement and push for imports of high-quality agricultural products and services seems to have played their part.
With this, markets rushed to risk-safety and bought the Japanese yen (JPY) and Gold as they are considered traditional safe-havens.
October month HIA New Home Sales and Private Sector Credit from Australia are immediate catalysts to watch for the Aussie pair traders. While the housing market data is expected to recover to 6.6% from 5.7% prior, the credit statistics could also follow the suit if matching +0.3% forecast versus +0.2% previous figure on the monthly basis.
After the data, the market will concentrate on how the US traders respond to the latest risk aversion during their half-day active session.
Technical Analysis
A two-week-old falling trend line and 50-day Simple Moving Average (SMA) limit the pair’s immediate upside around 0.6800/05 while mid-October low near 0.6720 becomes the tough adjacent support to watch during further declines.
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