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AUD/USD recovers daily losses as USD slips on dismal data

  • AUD/USD turns flan on the day in the early NA session.
  • Durable goods orders data from the U.S. disappoints.
  • DXY eases to session lows ahead of FOMC minutes.

After falling to a daily low at 0.7555 during the European trading hours, the AUD/USD pair started to retrace its losses following the macroeconomic data releases from the U.S. At the moment, the index trades at 0.7583, a couple of pips above its daily opening level.

Durable goods orders contract in October

According to the data released by the U.S. Census Bureau, new orders for manufactured durable goods on a monthly basis in October decreased $2.8 billion, or 1.2%, to $236.0 billion while new orders excluding transportations increased 0.4%, both readings missing investors' expectations. Although the initial weekly jobless claims eased to 239K from 252K for the week ending November 18, the greenback suffered sharp losses, dragging the US Dollar Index to a fresh daily low at 93.65. As of writing, the index was 93.68, down 0.23% on the day.

Later in the session, the FOMC is going to release the minutes of the November meeting. However, the market reaction to the statement could stay limited with investors getting ready for the Thanksgiving holiday that starts tomorrow. “Markets will parse the Fed minutes for any signal about the path of rates beyond year-end but with a December rate hike over 95% priced, it is unlikely that the minutes add anything new to the debate,” analysts at TDS argued in a recent report

Technical levels to watch

The initial hurdle for the pair aligns at 0.7620 (20-DMA) followed by 0.7700 (psychological level/200-DMA) and 0.7740 (50-DMA). On the flip side, supports are located at 0.7555 (daily low), 0.7500 (psychological level) and 0.7420 (Jun. 5 low).


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