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.

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