VOT Research Desk
Despite a quiet market, the AUD/USD pair is doing poorly in the Asian session. After a small sell-off in early Tokyo, the Aussie asset has reclaimed the 0.6760 barrier. Volatility in the currency market has been significantly reduced since trading activity in the United States has been reduced due to Thanksgiving Day.
Meanwhile, the US Dollar has weakened in the Tokyo session following a violent swing in early trade.
The US dollar has moved sideways as the economic calendar is devoid of significant events. The alpha provided by US Treasury bonds is on investors’ selling list as the odds for a slower Fed rate hike have increased.
The 10-year US Treasury yield has extended its decline. Investors are diverting their attention away from the Australian dollar and toward the release of Retail Sales data.
On a monthly basis, the economic data is predicted to fall to 0.3% from 0.6% in the previous publication. A drop-in consumer demand would please the Reserve Bank of Australia (RBA), as lower retail sales would force producers to lower their prices in order to increase demand. This could lead to a drop-in inflation in the near future.
|
Daily SMA20 |
0.6568 |
|
Daily SMA50 |
0.6488 |
|
Daily SMA100 |
0.669 |
|
Daily SMA200 |
0.6938 |
