- 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.
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.
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 bounces back, trades above 1.0860
EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future.
GBP/USD turns north ahead of the weekly close, approaches 1.2700
GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell.
Gold resumes advance and approaches record highs
Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data.
Solana likely to extend gains as DeFi airdrop season could boost user base
Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report. SOL price extends rally, yielding nearly 4% daily gains.
Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside
TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.