AUD/USD: Struggles to keep 0.7400 amid fresh challenges to risk
|- AUD/USD prints three-day losing streak despite recently bouncing off intraday low.
- US-China tussle intensifies, vaccine hopes dim but stimulus updates flash welcome signs.
- Aussie Q3 House Price Index, NAB data for November print upbeat signals.
- Risk catalysts remain as the key, stimulus, trade/political headlines are back in focus.
AUD/USD trims early-Asian losses while recovering from the intraday low of 0.7409, currently down 0.05% intraday to 0.7418, during early Tuesday. The Aussie pair recently benefited from the upbeat prints of second-tier housing and sentiment data from home but challenges to risk from China tame the bulls.
Australia’s third-quarter (Q3) House Price Index grew over -1.8% prior and -1.0% forecast to +0.8% QoQ while the YoY figures eased from 6.2% previous readouts to 4.5%. Further, the National Australia Bank’s (NAB) Business Confidence rose past-5 earlier to 12 while the Business Conditions gauge crossed 1 with 9 figures.
On the other hand, news that Hong Kong police arrests a few more of the top opposition members and the Trump administration levies fresh sanctions on 14 Chinese diplomats highlights the risk-off mood. Elsewhere, Chinese Foreign Minister Wang Yi underscored a commitment to the phase 1 trade deal with the hopes of a better start to the phase 2 deal discussion with US President-elect Joe Biden.
It’s worth mentioning that the US Senate Majority Leader Mitch McConnell stays optimistic on reaching the much-awaited covid stimulus deal with the Democratic Party members while Japan is up for the third aid package to combat the pandemic. Furthermore, vaccine hopes are receding their importance with Pfizer likely easing on the US supply from June.
Amid these plays, S&P 500 Futures drop 0.30% whereas Asia-Pacific stocks trade mixed with Japan’s Nikkei 225 down 0.40% and Australia’s ASX 200 up 0.25% by press time.
Given the lack of major data/events left for publishing, AUD/USD traders should pay attention to the risk news for fresh direction.
Technical analysis
Although the 0.7400 round-figure offers immediate support to the AUD/USD traders, a five-week-old ascending trend line, at 0.7360 now, becomes the key for further downside. Alternatively, July 2018 top near 0.7485 remains on the bull’s radar until the quote remains beyond the 0.7400 threshold.
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.