- Aussie under pressure amid risk aversion.
- US Dollar rises after a three-day negative streak, ahead of US CPI.
- AUDUSD drops more than a hundred pips from Tuesday’s high.
The AUDUSD pair printed a fresh two-day low during the American session as the US Dollar extended gains supported by risk aversion. It bottomed at 0.6431. The bearish pressure still persists.
Awaiting CPI numbers
The day before the release of the October US Consumer Price Index, the Greenback is gaining support and is rising after three days of consecutive losses. So far, the midterm elections showed no major surprises having a limited market impact. The focus is on the CPI due tomorrow which is expected to show inflation at 8%.
Earlier on Thursday, the Melbourne Institute will release the Survey of Consumer Inflationary and Wage Expectations. Inflation expectation were expected to rise from 5.4% in October to 5.7% in November.
Short-term outlook
The AUDUSD weakened as Wall Street and metals turned negative for the day. US yields are now lower, on a session without a clear direction. It the negative tone prevails in markets, more losses in the pair seem likely.
On Tuesday AUDUSD reached its highest level in seven weeks at 0.6550. The Aussie failed to consolidate above 0.6500 and is back under 0.6450 and also under the 20-Simple Moving Average in the 4-hour charts. The next support might be located at 0.6405/10.
A recovery above 0.6500 would remove the bearish pressure, exposing the recent high at 0.6550, with interim resistance at 0.6520.
Technical levels
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 stays defensive near 1.0500 amid French political jitters
EUR/USD is battling 1.0500 in the European session on Wednesday. The pair trades with caution amid renewed US Dollar buying and French political uncertainty as the government faces a no-confidence vote in a busy day ahead. Markets await US data, Fed Chairman Powell's speech.
GBP/USD struggles to reclaim 1.2700 ahead of US data, Powell
GBP/USD fluctuates in a tight channel below 1.2700 on Wednesday. The pair reverses dovish BoE Governor Bailey's remarks-led drop as traders reposition ahead of US ADP Jobs data, ISM Services PMI report and Fed Chair Powell's speech.
Gold price treads water near $2,640, Fed Chair Powell's speech eyed
Gold price attracts some sellers following an intraday uptick to the $2,650 supply zone in the early European session on Wednesday. The precious metal, however, remains confined in a familiar range held over the past week or so as traders seem reluctant to place aggressive directional bets ahead of Fed Chair Jerome Powell's speech.
Bitcoin rebounds as South Korea martial law proves short-lived
Bitcoin recovers slightly, trading above $96,000 on Wednesday, after its recent dip on Tuesday due to the political strife in South Korea. With the crisis seeming to be mostly over, BTC recovered more as the reversal of the martial law restored confidence in crypto markets.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.