fxs_header_sponsor_anchor

News

AUDUSD extends slide below 0.6450 as Wall Street turns negative

  • Aussie under pressure amid risk aversion.
  • US Dollar rises after a three-day negative streak, ahead of US CPI.
  • AUDUSD drops more than a hundred pips from Tuesday’s high.

The AUDUSD pair printed a fresh two-day low during the American session as the US Dollar extended gains supported by risk aversion. It bottomed at 0.6431. The bearish pressure still persists.

Awaiting CPI numbers

The day before the release of the October US Consumer Price Index, the Greenback is gaining support and is rising after three days of consecutive losses. So far, the midterm elections showed no major surprises having a limited market impact. The focus is on the CPI due tomorrow which is expected to show inflation at 8%.

Earlier on Thursday, the Melbourne Institute will release the Survey of Consumer Inflationary and Wage Expectations. Inflation expectation were expected to rise from 5.4% in October to 5.7% in November.

Short-term outlook

The AUDUSD weakened as Wall Street and metals turned negative for the day. US yields are now lower, on a session without a clear direction. It the negative tone prevails in markets, more losses in the pair seem likely.

On Tuesday AUDUSD reached its highest level in seven weeks at 0.6550. The Aussie failed to consolidate above 0.6500 and is back under 0.6450 and also under the 20-Simple Moving Average in the 4-hour charts. The next support might be located at 0.6405/10.

A recovery above 0.6500 would remove the bearish pressure, exposing the recent high at 0.6550, with interim resistance at 0.6520.

Technical levels

 

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.