FxWirePro: AUD/USD Daily Outlook

Chart - Courtesy Trading View 

AUD/USD was trading 0.31% higher on the day at 0.6753 at around 06:40 GMT.

The pair is extending gains for the 3rd straight session, retraces dip below 110-EMA and daily cloud.

A broad-based US Dollar weakness ensued after Federal Open Market Committee (FOMC) minutes released on Wednesday showed majority policymakers vouched for decelerating pace of interest rate hikes. 

The 10-year US Treasury yields have slipped below 3.69% as investors see no continuation of 75 basis points (bps) rate hike spell.

Analysts expect Fed chair Jerome Powell will likely shift to a half-percent rate hike extent for December’s monetary policy meeting.

Also, an improvement in investors’ risk appetite has underpinned the antipodeans, supporting the pair higher.

Technical indicators support upside in the pair. Price action has brushed aside Doji formation at 21-week EMA and is extending gains above.

Momentum is bullish, MACD and ADX support upside. Chikou span is biased higher. GMMA shows near-term trend is bullish.

Support levels - 0.6693 (110-EMA), 0.6596 (21-EMA)

Resistance levels - 0.6866 (Upper BB), 0.6935 (200-DMA)

Summary: AUD/USD trades with a bullish bias. The pair is on track to extend gains above 0.68 handle. 200-DMA at 0.6935 in sight.