AUD/USD: Refreshes intraday high above 0.7750 as China, Japan brings mild risk-on mood on return

AUD/USD picks up bids while staying inside immediate trading range.
Market sentiment improves as China, Japan initially cheers receding fears of reflation.
Updates from G7 ministerial meeting, covid updates could join pre-US NFP mood to sour the mood.
RBA’s Debelle, US weekly jobless claims may offer intermediate direction.

Anil Panchal FXStreet

AUD/USD reverses intraday losses into gains while picking up bids to 0.7757, up 0.12% on a day, amid early Thursday. The pair’s latest run-up from the day’s low could be traced to the return of traders from China and Japan after a long break since last Friday.

While the recently easing reflation woes might have offered a brighter welcome to Tokyo and Beijing, the Western ire over Chinese policies and the latest coronavirus (COVID-19) updates from Australia seem to test the bulls.

The ongoing Foreign Ministers’ meeting of the key Group of Seven (G7) nations criticize China’s role in global trade as well as its push for power in Taiwan and Hong Kong. On the other hand, Australia’s New South Wales (NSW) witnessed one more covid case and announced fresh restrictions, though not so strong.

Elsewhere, the Fed policymakers rejected fears that the latest inflation run-up may trigger monetary policy normalization. Also supporting the mood could be the mildly weak US data and downbeat Treasury yields.

Read: Hunt for yield to keep US dollar weak for at least three months – Reuters Poll

Amid these plays, S&P 500 Futures rise 0.10% while the US 10-year Treasury yields seesaw around 1.58% by the press time. Further, stocks in Japan are up but those from China await fresh clues.

Moving on, RBA Deputy Governor Guy Debelle’s speech around 09:00 AM will be the key as he will be speaking on the covid’s economic impact. Though, the pre-NFP mood may continue to hinder the pair’s performance ahead of Friday’s key US jobs report.

Technical analysis

Only if the AUD/USD prices drop below 50-day and 100-day SMA convergence around 0.7710, the bears are permitted. Alternatively, the 0.7820-0.7690 trading range can keep restricting short-term moves of the pair.

AUD/USD

Overview
Today last price	0.7749
Today Daily Change	1 pips
Today Daily Change %	0.01%
Today daily open	0.7748

Trends
Daily SMA20	0.7724
Daily SMA50	0.7709
Daily SMA100	0.7709
Daily SMA200	0.7473

Levels
Previous Daily High	0.7755
Previous Daily Low	0.7704
Previous Weekly High	0.7819
Previous Weekly Low	0.7696
Previous Monthly High	0.7819
Previous Monthly Low	0.7531
Daily Fibonacci 38.2%	0.7735
Daily Fibonacci 61.8%	0.7723
Daily Pivot Point S1	0.7716
Daily Pivot Point S2	0.7684
Daily Pivot Point S3	0.7665
Daily Pivot Point R1	0.7768
Daily Pivot Point R2	0.7787
Daily Pivot Point R3	0.7819

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.

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