- AUD / USD finds some support near 0.7500 and halts its corrective decline from multi-year highs.
- Hopes for more fiscal stimulus in the US keep USD bulls on the defensive and offer some support for the pair.
- The bulls lack conviction ahead of the latest FOMC monetary policy meeting.
The pair AUD/USD has managed to bounce around 20 pips from Asian session lows to three-day lows and moves in search of a direction around the region of 0.7520.
The pair has captured some buying above the key psychological level of 0.7500 and, for now, it appears to have halted its pullback from the two-and-a-half-year highs set the day before. The Growing concerns about the continued rise in new coronavirus cases and the imposition of new restrictions have overshadowed optimism about the launch of coronavirus vaccines. This, in turn, has been seen as a key factor that has put some pressure on the higher perceived risk Australian dollar.
The AUD has had a rather subdued reaction after the publication of Chinese industrial production data in line with expectations, which expanded for the eighth consecutive month in November. Meanwhile, a moderate action in the price of the US dollar has offered some support to the AUD / USD pair and has helped to stop the decline, At least for the moment. Indeed, the US dollar DXY index remains weak near the lowest level since April 2018 amid expectations of additional US fiscal stimulus measures.
Apart from this, investors now seem reluctant to open aggressive positions and prefer to wait on the sidelines before the FOMC monetary policy meeting. Market expectations are growing that the Fed will further ease its monetary policy by expanding the bond purchase program. This could also be cited as another factor that has contributed to the directionless movement of the AUD / USD pair.
Market participants are now waiting for the US economic calendar, which features the second-tier releases of the Empire State Manufacturing Index and industrial production data, for some momentum. This, coupled with the stimulus news from the US and developments related to the coronavirus saga, could influence USD price dynamics and generate some trading opportunities around the AUD / USD pair.
AUD / USD technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
