AUDUSD cuts recent gains to two-month high near 0.6700, Australian jobs data watched

  • AUDUSD pulls back from 100-DMA, remains under pressure around intraday low as of late.
  • Bulls take a breather amid light calendar, China Covid fears.
  • Disappointing US data and risk-positive headlines from Beijing previously favored the bulls.
  • RBA Minutes Australian jobs report awaits further momentum, bulls set to keep reins amid Fed Pivot talks.

AUDUSD pulls back from a two-month high at 0.6680, triggering a two-day uptrend, as market participants look for more clues to extend the previous weekly rise in Monday’s first Asian session . In doing so, the Aussie pair also portrays the cautious mood ahead of key data/events in Australia and the US in a light calendar.

Even so, China’s latest easing in coronavirus-related activity restrictions and positive offers for the struggling reality sector join talk of easy rate hikes from the US Federal Reserve (Fed) to keep the hope of AUDUSD buyers. That said, the Communist Party of China (CCP) has announced further easing of Covid controls and measures taken to ease the pain of the real estate market through a 16-point plan that includes more loans, allowing delays in bond payments and a change in home loan limits. .

It should be noted that Friday’s US data joined recent dovish comments from Fed officials in keeping AUDUSD buyers hopeful. That said, the early reading of the University of Michigan Consumer Confidence Index for November fell to 54.7 from 59.5 for market expectations and 59.9 for the previous reading. Recently, Fed Governor Christopher Waller said the Fed could start considering moving forward at a slower pace.

On the contrary, Reserve Bank of Australia (RBA) policymakers have openly pledged to be ready for easy rate hikes, which in turn keeps AUDUSD buyers chained. High virus numbers from China over several months, as well as geopolitical fears from this week’s Group of 20 Nations (G20) meeting in Bali are also likely to challenge buyers of the pair.

In the midst of these games, US actions remained firmer even though the bond market holiday limited yesterday’s moves. However, the return of full markets appears to have challenged AUDUSD buyers lately, as S&P 500 futures are posting small losses at the time of writing.

Thereafter, a meeting between US President Joe Biden and Chinese Premier Xi Jinping will be of immediate importance, given the geopolitical tensions. However, the RBA The minutes will be followed closely before the Aussie jobs report as policymakers ready for easy rate hikes. The likely pullback, however, remains elusive if the U.S. Retail sales join the recently disappointing consumer-centric data from the United States.

Technical analysis

Although the 100-DMA caps the AUDUSD’s immediate rise near 0.6700, the pair’s sellers remain off the table unless we witness a clear downside break of the early October high. around 0.6550.

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