VOT Research Desk
On Wednesday, there is some selling pressure on the AUDUSD pair, which causes it to continue its overnight late drop from its highest level since September 23 in the mid-0.6500s.
During the first part of the European trading day, the pair declines to the 0.6470 region, appearing to have temporarily broken a three-day winning run amid a little rise in the US Dollar.
In reality, a number of variables support the USD Index as it makes a good-looking recovery from a seven-week low reached the day before. The markets are still pricing in at least a 50 basis point rate rise in December despite decreased expectations for a more aggressive tightening of policy by the Fed.
This continues to sustain the high US Treasury bond rates and boosts the demand for the USD.
The speeches of the presidents of the New York Fed and Richmond Fed will provide traders with guidance on Wednesday since there are no significant market-moving economic releases from the US. This might affect the USD price dynamics and give the AUDUSD pair some momentum, coupled with US bond rates and the overall risk attitude in the market. The most recent US consumer inflation data, which are coming on Thursday, will continue to be the centre of attention.
|
Daily SMA20 |
0.6363 |
|
Daily SMA50 |
0.6515 |
|
Daily SMA100 |
0.6714 |
|
Daily SMA200 |
0.6966 |
