AUDUSD snaps two-day uptrend near 0.6450 with eyes on RBA’s Lowe
- AUDUSD renews intraday low as market sentiment sours during a sluggish session.
- China reports highest fresh covid numbers since April, fresh statistics from Australia arrived mixed.
- Light calendar could restrict the pair’s moves ahead of US/China inflation, RBA’s Lowe could entertain intraday traders.
AUDUSD renews its intraday low around 0.6465 while printing mild losses during the early Tuesday morning in Europe. The Aussie pair’s latest losses snap a two-day uptrend while probing the bulls at a one-week high. In doing so, the quote justifies its risk-barometer status while also tracing mixed signals from Aussie data.
National Australia Bank’s (NAB) Business Conditions eased to 22 in October from 25 prior, versus 20 forecast. Further, the NAB Business Confidence slumped to 0 during the stated month compared to the market’s consensus of reprinting 5 figure.
Earlier in the day, Australia’s Westpac Consumer Confidence slumped to -6.9% in November versus -0.9% prior. Further, the weekly print of ANZ-Roy Morgan Consumer Confidence dropped to the lowest levels since April 2020, to 78.7 at the latest. The details of the report also mentioned that the inflation expectations were the highest since the data was first released in April 2010.
Elsewhere, China reported the biggest jump in the fresh daily coronavirus numbers since April, which in turn justifies the dragon nation’s previous defense of the zero-covid policy.
Furthermore, indecision over the US Federal Reserve’s (Fed) next move and the cautious mood ahead of the US Consumer Price Index (CPI) for October, as well as the US mid-term election, also underpin the US dollar’s corrective bounce.
While portraying the mood, the US stock futures print mild losses whereas the US Treasury yields grind higher and the US Dollar Index (DXY) recover from the eight-day low.
Looking forward, comments from Reserve Bank of Australia (RBA) Governor Philip Lowe will be crucial for the AUDUSD pair traders amid the recently downbeat statements from the Aussie central bankers that weighed on the quote previously. Also important will be the risk catalysts and the inflation numbers from the US and China, up for publishing on Thursday.
Technical analysis
AUDUSD retreats from the 0.6410-15 resistance confluence including the 50-DMA and a one-month-old descending trend line, which in turn directs sellers toward the 10-DMA support near 0.6420.