AUD/USD retreats further from multi-week tops, slides to 0.7325-30 region

  • Disappointing housing data from Australia prompted some profit-taking around AUD/USD.
  • A subdued USD price action might help limit the downside ahead of top-tier US macro data.

The AUD/USD pair extended its intraday corrective slide from 12-week tops and dropped to fresh session lows, around the 0.7325 region in the last hour.

Following an early uptick to the highest level since September 2, the pair witnessed a modest pullback from the 0.7375 region following the release of downbeat housing data from Australia. In fact, the Construction Work Done fell 2.3% QoQ during the third quarter of 2020 as compared to -2.0% anticipated and -0.7% previous.

Apart from this, the downtick could further be attributed to some repositioning trade ahead of a flurry of top-tier US economic releases on Wednesday. The AUD/USD pair has now eroded a part of the previous day's strong gains, albeit a softer tone surrounding the US dollar might help limit any further losses.

The greenback remained depressed on the back of the prevalent upbeat market mood – supported by progress toward remedies for the highly contagious coronavirus disease and clarity on the US political front. It is worth recalling that President-elect Joe Biden was formally given a go-ahead to begin his transition to the White House.

Adding to this, reports that the former Fed Chair Janet Yellen could become the next US Treasury Secretary provided an additional boost to the global risk sentiment. This, in turn, should extend some support to the perceived riskier Australian dollar and could attract some dip-buying around the AUD/USD pair.

Market participants now look forward to the US economic docket, highlighting the releases of the preliminary (second estimate) GDP report, Durable Goods Orders, Initial Weekly Jobless Claims and final Michigan Consumer Sentiment Index for November. This, along with the FOMC meeting minutes should provide a fresh directional impetus to the AUD/USD pair.

Technical levels to watch


Today last price 0.7334
Today Daily Change -0.0028
Today Daily Change % -0.38
Today daily open 0.7362
Daily SMA20 0.7227
Daily SMA50 0.7179
Daily SMA100 0.7175
Daily SMA200 0.6846
Previous Daily High 0.7368
Previous Daily Low 0.7282
Previous Weekly High 0.734
Previous Weekly Low 0.7254
Previous Monthly High 0.7244
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7335
Daily Fibonacci 61.8% 0.7315
Daily Pivot Point S1 0.7307
Daily Pivot Point S2 0.7252
Daily Pivot Point S3 0.7222
Daily Pivot Point R1 0.7392
Daily Pivot Point R2 0.7423
Daily Pivot Point R3 0.7477



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