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Outperforms, USD Weakness Continues

AUD

AUD/USD prints $0.6765, little changed from levels seen in late NY trading.

  • The pair rose ~0.5% yesterday with only JPY and SEK outperforming the AUD in the G10 space.
  • The USD continued to fall in the wake of the dovish feel provided in the FOMC minutes.
  • AUD/USD firmed through the London session, before meeting resistance at $0.6778. The rate then settled into a tight $0.6760/70 range as volume tailed off due to U.S. Thanksgiving Holiday.
  • Technically, the AUD/USD trend remains bullish. Bulls target a break of $0.6797, the Nov 15 high. A break through there would open the way to $0.6909, the 76.4% retrace of the 11 Aug-13 Oct downleg. Conversely bears look for a break of $0.6568, the 50-day EMA, to re-establish the downtrend.
  • The domestic data calendar is empty today, which will leave broader themes and the Chinese COVID situaiton at the fore.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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