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AUDUSD steadies near 0.6700 with bearish moves contained above 0.6650

  • Aussie consolidates at six-week highs near 0.6700.
  • Investors are pricing in easier monetary tightening from the Fed.
  • China’s decision to ease COVID-19 restrictions has helped improve sentiment.

The AUD continues to rise for the second day in a row, fueled by US dollar weakness on growing hopes that the US Federal Reserve will begin to ease its monetary tightening path in the coming months.

On Friday, the pair appreciates 0.8% and is up nearly 4% in the last two days, having hit a fresh 6-week high at 0.6690, with limited downside attempts above 0.6650 so far.

Hopes that the Fed will ease have boosted market sentiment

Investors’ risk appetite increased on Thursday after the release of cooler-than-expected US Consumer Price Index data. Annual inflation eased to 7.7% in October, from 8.2% the previous month, beating expectations for an 8% reading.

These figures suggest that inflationary pressures may have peaked and provide some room for the US central bank to ease its monetary tightening cycle in the coming months.

The dollar and Treasury yields sank on the data, sending stocks and risk-sensitive currencies such as the Australian dollar soaring in recent sessions.

Furthermore, news that China is relaxing some of its strict COVID-19 restrictions and cutting quarantine periods has eased concerns about the potential impact on the global economy of a new round of lockdowns, further buoying sentiment. of investors.

The economic calendar is quite scarce today, since the United States celebrates Veterans Day. The only relevant indicator is the Michigan Preliminary Sentiment Index, which has fallen beyond expectations, to 54.7 from 59.9 in October, while the consensus anticipated a softer decline to 59.5.

Technical levels to watch

AUD/USD

Overview
last price today 0.6684
Today I change daily 0.0068
Today’s daily variation in % 1.03
Daily opening today 0.6616
Trends
daily SMA20 0.6386
daily SMA50 0.6504
daily SMA100 0.6706
daily SMA200 0.696
levels
Previous daily high 0.662
Previous Daily Low 0.6387
Previous Weekly High 0.6493
Previous Weekly Low 0.6272
Previous Monthly High 0.6548
Previous Monthly Low 0.617
Daily Fibonacci of 38.2% 0.6531
Daily Fibonacci of 61.8% 0.6476
Daily Pivot Point S1 0.6462
Daily Pivot Point S2 0.6307
Daily Pivot Point S3 0.6228
Daily Pivot Point R1 0.6696
Daily Pivot Point R2 0.6775
Daily Pivot Point R3 0.6929

Source: Fx Street

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