- AUD/USD bulls face an uphill battle after mixed Australian Trade, Retail Sales data.
- The US dollar slips as Fed Chair Powell says ‘patience’ on rate hike after taper
- All eyes on the RBA Monetary Policy Statement and the US NFP release due Friday.
AUD/USD is off the highs but holds above the 0.7450 level following the release of the Australian Trade Balance and Retail Sales data, which came in mixed for September.
Read: Aussie Trade Balance surplus a positive for AUD
Despite the retracement, the aussie keeps its recovery mode intact amid the risk-on market mood. The Japanese traders return from a holiday and drive the Nikkei 225 index about 1% higher on the day, tracking another record run on Wall Street overnight. Meanwhile, the ASX 200 is adding 0.20% so far.
The upbeat mood can be attributed to the dovish comments from Fed Chair Jerome Powell, which failed to offer any fuel to the mid-2022 rate hike expectations. The Fed did announce the widely expected $15 billion worth of tapering on Wednesday but noted that the lift-off test is not met on the employment goal.
The dovish comments from Powell knocked the US dollar down, triggering a fresh upswing in the riskier assets such as the aussie dollar. Post-Fed, the currency pair is on a rebound from the lows of 0.7413, currently trading at 0.7461, up 0.22% on the day.
As the dust settles over the Fed’s aftermath, markets will shift their attention towards Friday’s Monetary Policy Statement from the Reserve Bank of Australia (RBA) and the US NFP release. Meanwhile, the pair will take cues from the US weekly jobless claims data and the risk tone for fresh trading opportunities.
AUD/USD: Technical levels to watch out
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.
Latest Forex News
Editors’ Picks
EUR/USD rebounds to 1.1350 on modest dollar weakness
EUR/USD regained its traction after declining toward 1.1320 during the European session and rose to 1.1350 area. The dollar's is facing modest selling pressure amid falling US Treasury bond yields and allowing the pair to continue to edge higher ahead of the weekend.
GBP/USD struggles to pull away from 10-day low set near 1.3550
GBP/USD fell toward 1.3550 on Friday and touched its weakest level in 10 days. Although the US Dollar Index stays in the negative territory in the early American session, the risk-averse market environment doesn't allow the pair to stage a convincing recovery.
Gold reclaims $1,840 amid falling US T-bond yields
Gold reversed its direction after testing $1,830 earlier in the day and turned positive on the day above $1,840. The benchmark 10-year US Treasury bond yield is losing more than 3% at 1.75%, fueling XAU/USD's rebound.
BTC may capitulate to $30,000
Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.
Will the Netflix stock price rebound?
Netflix stock edged down after better than expected Q4 results. Will the Netflix stock price rebound? Expectations of rising subscription and higher prices are bullish for Netflix stock price.