- Disappointing Aussie macro data continues exerting some downward pressure.
- The USD gains some follow-through traction despite the US yield curve inversion.
- Optimistic trade-related remarks from China provided a minor boost in the last hour.
The AUD/USD pair quickly recovered around 15-pips in the last hour and is currently placed in the neutral territory, around the 0.6730-35 region.
The pair extended this week's rejection slide from the vicinity of the 0.6800 handle and lost some additional ground on Thursday following the disappointing release of Australian private sector business investment data, showing capital expenditure fell 0.5% in three months to June.
The pair touched to an intraday low level of 0.6717 in reaction to dismal data and was further pressurized by a modest US Dollar uptick, which gained some follow-through traction through the early European session on Thursday despite the recent inversion of the US bond yield curve.
China’s trade remarks provided a minor lift
The pair, however, managed to attract some buying at lower levels and the latest leg of a sudden pickup came after the Chinese Commerce Ministry spokesman Gao's comments on the US-China trade spat, showing willing to resolve the issue via a calm attitude.
Adding to the optimistic comments, the spokesman hoped that the US cancels planned additional tariffs to avoid an escalation in the trade war and provided a modest lift to the China-proxy Australian Dollar, albeit bulls lacked any strong conviction ahead of Thursday's important US macro data.
The US economic docket highlights the release of revised US Q2 GDP growth figures, due later during the early North-American session, which might influence the USD price dynamics and contribute towards producing some meaningful trading opportunities.
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.