AUD / USD declines from daily highs at 0.7535, hovering around 0.7510

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  • Risk appetite sentiment surrounds financial markets, but Aussie resistance remains.
  • US President Joe Biden agreed to push for an agreement in a meeting with lawmakers.
  • Australia’s CPI figures rose more than expected, lifting AUD / USD towards daily highs at 0.7535.
  • Durable goods orders from the US contracted less than expected, minimizing the impact on the US dollar.

The AUD/USD it rises during the American session, growing 0.17% and trading at 0.7513 at the time of writing. Market sentiment was pessimistic during the European session, benefiting safe-haven currencies such as the dollar. However, the risk-sensitive AUD held its gains, comfortably hovering around 0.7510.

Market sentiment is bearish as US stock indices lost gains earlier in the week, with the exception of the high-tech Nasdaq Composite, which was up 0.47%. The US spending bill is back on the radar as it was one of the factors, while commodity prices drop a bit.

According to the news, US President Joe Biden agreed to push for a deal as soon as possible in a meeting with lawmakers. In addition, the chairman of the US Senate Finance Committee, Ron Wyden, released a 23.8% tax proposal focused on unrealized gains from assets held by billionaires, affecting 700 people.

Mixed US economic data caused the US dollar index to swing between gains and losses

In the Asian session, the Australian economic agenda released inflationary figures. RBA’s cut average consumer price index for the third quarter expanded 0.7%, higher than the estimated 0.5%, while the general consumer price index rose 0.8%, in line with forecast and second quarter figures . AUD / USD reacted positively to the news, hitting a daily high at 0.7535, ahead of US figures.

On the US front, the economic agenda showed that general durable goods orders were -0.4% better than the -1.1% expected, but below 1.3% in August. In contrast, orders for capital goods, excluding aircraft, increased to 0.8%, higher than the 0.5% estimated and printed previously.

The USD reacted negatively to the news, but was last seen at 93.82, shedding 0.14% at press time, supported by falling US Treasury yields, with the 10-year yield down four. basis points, standing at 1,575%.

That being said, AUD / USD traders would be relying on market sentiment, along with the dynamics of the US dollar, as the focus shifts to the Federal Reserve meeting on November 2-3. Additionally, investors would keep an eye on spending bills and fiscal policy developments as market sentiment soars as November begins, reducing Democrats’ maneuvering time.

Technical levels

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