AUD/USD stays under 10-day SMA ahead of Australia Q3 Private Capex numbers

AUD/USD keeps it below 10-day Simple Moving Average (SMA) while trading near 0.6775 on early Thursday morning in Asia.

The Aussie pair failed to stick to the previous recovery gains as the broad strength of the US dollar (USD), coupled with looming downbeat catalyst for China, kept it under pressure.

Investors showed a little care to the slightly downbeat Core Personal Consumption Expenditure (PCE) numbers from the United States (US) as positive readings of the Gross Domestic Product (GDP) and Durable Goods Orders covered the losses.

Moody’s call highlighting challenges to China’s housing sector and soft industrial profit numbers from the dragon nation should also be considered as additional downside factors for the Aussie.

It’s worth mentioning that the market’s risk tone stayed upbeat following the Wall Street Journal’s (WSJ) report that the US and China have phase-one text ready.

With this, the US 10-year treasury yields gain nearly three basis points to 1.77% while Wall Street again closed on the positive side.

Given the Thanksgiving Day holiday in the US markets will be mostly inactive during the later part of the day while the immediate moves could be directed by Australia’s third-quarter (Q3) Private Capital Expenditures (Capex) data, forecast -0.1% versus -0.5% prior.

Technical Analysis

Unless providing a daily closing beyond a 10-day SMA level of 0.6795, prices keep sliding towards mid-October low near 0.6720.