- AUD/USD seesaws around 50-day EMA as trade pessimism, greenback strength dominates market sentiment.
- Australia’s Westpac Consumer Confidence and the Wage Price Index are immediate catalysts to watch.
- The US CPI, Powell’s Testimony will decorate the economic calendar afterward.
With no clarity over the trade US-China trade deal, the AUD/USD pair remains under pressure for the fourth consecutive day while trading around 0.6840 amid initial Wednesday morning in Asia.
The Aussie pair recently failed to benefit from the National Australia Bank’s (NAB) sentiment numbers amid broad market pessimism surrounding the trade deal between the United States (US) and China. However, the return of the US traders from Veterans Day holiday could help the US dollar (USD) to recover most of Monday’s losses during the previous day.
The US President Donald Trump, in his latest speech, from the New York Economic Club luncheon, again signaled nearness to the trade deal with China. However, the Republican leader didn’t refrain from the odds of a substantial increase in Chinese tariffs if they fail to make a deal. Elsewhere, the White House (WH) Economic Adviser Larry Kudlow also emphasized that the US had a very unfair relationship with China through the years so the deal has to be good for the US and US workers.
On the other hand, the Fedspeak has also been mixed with sustained support to the current monetary policy but the US President and WH Adviser both kept criticizing the Federal Reserve’s (Fed) role.
With this, the US 10-year treasury yields stay little changed to 1.92% while its Australian counterparts range between 1.28% and 1.31%.
Moving on, traders will now concentrate on November month Westpac Consumer Confidence, expected 2% versus -5.5% prior, ahead of the third quarter (Q3) Wage Price Index data that is likely staying unchanged at 2.3% on YoY and to decline from 0.6% previous to 0.5% on QoQ.
It should also be noted that Testimony from the Fed Chairman Jerome Powell and Consumer Price Index (CPI) data from the US will be in the spotlight during the later part of the day. Investors will look for signs to confirm the latest bullish bias concerning the Fed’s monetary policy stand while also keeping eyes on trade headlines.
Technical Analysis
50-day Exponential Moving Average (EMA) level of 0.6832 and a rising trend-line since October 02, at 0.6815 now, can keep limiting the pair’s near-term declines. On the contrary, 100-day EMA level of 0.6856 and 0.6900 seem to be the immediate upside barriers.
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.