AUD/USD extends losses to 0.6825 ahead of key Aussie/China data
- AUD/USD shrugs off comments from RBA Lowe, remains under pressure.
- Risk tone stays on the back foot amid cautious trading ahead of the key events, no major positives on the US-China.
- Aussie housing, Mid-Year Economic and Fiscal Outlook can entertain traders ahead of China’s inflation data and a speech from RBA’s Bullock.
AUD/USD declines to 0.6825 during early Tuesday morning in Asia. The pair showed no reaction to the RBA Governor’s latest public appearance in search of more specific clues from the busy economy calendar.
While speaking at the AusPayNet Summit, in Sydney, the Reserve bank of Australia (RBA) Governor Philip Lowe skipped mentioning the Australian economy or the monetary policy.
Read More: RBA’s Lowe concentrates on payments system and digital economy
During the previous day trade sentiment remained under pressure as the United States (US) and China kept the global traders guessing about phase-one ahead of the Trump administration’s tariff deadline on December 15. While the US President Donald Trump and Chinese diplomat spread positive comments off-late, traders seem to doubt the wordings. With this, the US 10-year treasury yields declined two basis points (bps) to 1.82% whereas Wall Street ran into losses.
The pair traders will have a busy Asian session with the third quarter (Q3) House Price Index and Mid-Year Economic and Fiscal Outlook to offer immediate clues ahead of China’s November month Consumer Price Index (CPI) and Producer Price Index (PPI) data. Further, the RBA’s Assistant Governor Michele Bullock will also cross the wires afterward and add a burden on to market watchers.
Other than the scheduled data, any updates concerning the phase-one deal between the US and China, coupled with trade/political news from elsewhere, can offer further direction to traders.
Technical Analysis
Prices are gradually grinding lower to re-test 100-day Simple Moving Average (SMA, around 0.6810 now, a break of which could divert sellers to November lows near 0.6755. On the upside, a monthly top near 0.6865 and 200-day SMA around 0.6915 can limit the pair’s short-term advances.