FxWirePro: AUD/USD plunges into daily cloud, renewed USD buying interest drags

Chart - Courtesy Trading View 

AUD/USD was trading 0.87% lower on the day at 0.6615 at around 09:35 GMT.

The pair is extending bearish gap open, slips lower for the fourth consecutive session.

US Dollar builds on last week's recovery from multi-week lows, weighing on the pair.

Concerns over rising COVID-19 infections in China and a potential global recession dampened the risk sentiment. China has initiated new lockdown measures in some of the country’s biggest cities.

Furthermore, hawkish signals from several Fed officials suggest that the US central bank is still far from pausing its policy-tightening cycle, supporting the greenback.

Market focus now on the release of the FOMC’s meeting minutes for clues on the size of the next interest rate hike in December.

On the data front, US manufacturing and services PMI readings, Michigan consumer sentiment, durable goods orders and new home sales will provide impetus.

Technical bias for the pair has turned bearish after failure to extend 110-EMA breakout. Price action has plunged back into the daily cloud. Scope for further downside.