Chart - Courtesy Trading View
Spot Analysis:
AUD/USD was trading 0.36% lower on the day at 0.6454 at around 05:55 GMT.
Previous Week's High/ Low: 0.6492/ 0.6272
Previous Session's High/ Low: 0.6490/ 0.6406
Fundamental Overview:
Mixed signals from Aussie data and souring risk-barometer status weigh on the pair.
National Australia Bank’s (NAB) Business Conditions slipped to 22 in October from 25 prior, above 20 forecast.
The NAB Business Confidence slumped to 0 during the said month compared to the market’s consensus of reprinting 5 figure.
Further, Australia’s Westpac Consumer Confidence slumped to -6.9% in November versus -0.9% prior.
Adding to the dismal data, the weekly print of ANZ-Roy Morgan Consumer Confidence dropped to 78.7, the lowest levels since April 2020.
Elsewhere, China reported the biggest jump in the fresh daily coronavirus numbers since April, denting the risky assets.
Also, indecision over the US Federal Reserve’s next move and the cautious mood ahead of the US October Consumer Price Index (CPI), as well as the US mid-term election, keep trades muted.
Comments from Reserve Bank of Australia (RBA) Governor Philip Lowe will be crucial for further direction.
Technical Analysis:
- Price action holds above 21-EMA
- Volatility is high and rising
- Momentum is bullish, Chikou span is biased higher
- GMMA indicator shows bullish shift on intraday charts
Major Support and Resistance Levels:
Support - 0.6411 (200H MA), Resistance - 0.6529 (55-EMA)
Summary: Aussie pair snaps a two-day uptrend, but near-term bias is bullish. Weakness only below 21-EMA.
