AUDUSD portrays market’s anxiety near 0.6510 key hurdle, US politics, inflation in focus

AUDUSD prints mild losses around six-week high, snaps three-day uptrend.
Fears of US government gridlock, pessimism surrounding China’s covid conditions and softer inflation data weigh on prices.
Risk appetite remains sluggish ahead of the key data/events, bears are likely to retake control.

Anil Panchal FXStreet

AUDUSD aptly justifies its risk-barometer status as it prints the first daily loss, so far, in four days amid political and/or covid updates. That said, the Aussie pair remains depressed around 0.6490, mildly offered heading into Wednesday’s European session.

A tug-of-war between the Republicans and Democrats has so far failed to provide any meaningful signals for the mid-term elections. Even so, fears of a government gridlock keep the sentiment sour of late.

Also weighing on the market’s risk appetite are the fresh virus-led lockdowns in China and the multi-month high covid numbers. Recently, China reports the highest levels of new COVID cases in six months, with the latest addition of 8,335 for November 08, while marking a fresh virus-led lockdown in Guangzhou’s second district.

Elsewhere, fresh pick-up of the US Treasury yields and the latest fall in the S&P 500 Futures, after hearing the fresh victory of John Fetterman, a Democrat, of the race for Senate in Pennsylvania.

It should be noted that the downbeat China inflation figures for October teased bears earlier in Asia.

To sum up, the risk-off mood and a light calendar ahead of Thursday’s Consumer Price Index (CPI) keep AUDUSD bears hopeful.

Technical analysis

AUDUSD retreats from a convergence of the 50-DMA and a five-week-old resistance line, around 0.6510, which in turn joins the recently bearish MACD signal to tease bears targeting the 21-DMA support near 0.6370.

Additional important levels

Overview
Today last price	0.6488
Today Daily Change	-0.0016
Today Daily Change %	-0.25%
Today daily open	0.6504

Trends
Daily SMA20	0.6363
Daily SMA50	0.6515
Daily SMA100	0.6714
Daily SMA200	0.6966

Levels
Previous Daily High	0.6551
Previous Daily Low	0.6444
Previous Weekly High	0.6493
Previous Weekly Low	0.6272
Previous Monthly High	0.6548
Previous Monthly Low	0.617
Daily Fibonacci 38.2%	0.651
Daily Fibonacci 61.8%	0.6485
Daily Pivot Point S1	0.6449
Daily Pivot Point S2	0.6393
Daily Pivot Point S3	0.6342
Daily Pivot Point R1	0.6555
Daily Pivot Point R2	0.6607
Daily Pivot Point R3	0.6662

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.