fxs_header_sponsor_anchor

News

AUD/USD: Refreshes intraday high above 0.7750 as China, Japan brings mild risk-on mood on return

  • AUD/USD picks up bids while staying inside immediate trading range.
  • Market sentiment improves as China, Japan initially cheers receding fears of reflation.
  • Updates from G7 ministerial meeting, covid updates could join pre-US NFP mood to sour the mood.
  • RBA’s Debelle, US weekly jobless claims may offer intermediate direction.

AUD/USD reverses intraday losses into gains while picking up bids to 0.7757, up 0.12% on a day, amid early Thursday. The pair’s latest run-up from the day’s low could be traced to the return of traders from China and Japan after a long break since last Friday.

While the recently easing reflation woes might have offered a brighter welcome to Tokyo and Beijing, the Western ire over Chinese policies and the latest coronavirus (COVID-19) updates from Australia seem to test the bulls.

The ongoing Foreign Ministers’ meeting of the key Group of Seven (G7) nations criticize China’s role in global trade as well as its push for power in Taiwan and Hong Kong. On the other hand, Australia’s New South Wales (NSW) witnessed one more covid case and announced fresh restrictions, though not so strong.

Elsewhere, the Fed policymakers rejected fears that the latest inflation run-up may trigger monetary policy normalization. Also supporting the mood could be the mildly weak US data and downbeat Treasury yields.

Read: Hunt for yield to keep US dollar weak for at least three months – Reuters Poll

Amid these plays, S&P 500 Futures rise 0.10% while the US 10-year Treasury yields seesaw around 1.58% by the press time. Further, stocks in Japan are up but those from China await fresh clues.

Moving on, RBA Deputy Governor Guy Debelle’s speech around 09:00 AM will be the key as he will be speaking on the covid’s economic impact. Though, the pre-NFP mood may continue to hinder the pair’s performance ahead of Friday’s key US jobs report.

Technical analysis

Only if the AUD/USD prices drop below 50-day and 100-day SMA convergence around 0.7710, the bears are permitted. Alternatively, the 0.7820-0.7690 trading range can keep restricting short-term moves of the pair.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.