AUD/USD stabilizing above take-off level below 0.76 the figure
AUD/USD is stabilising in the early Asian session after the dollar bounced back in the NY session with 0.7644 highs left for dust and bears taking the commodity currency right back to 0.7600, just above where the rally started from overnight at 0.7593.
- Gold rose to USD1295/oz, up about 0.5%
Commodities were softer in general, although the Kiwi outperformed in the higher beta space. Oil prices dropped 1-2% ahead of the OPEC meeting while Gold rose to USD1295/oz and closed up about 0.5%. the Aussie was dropping back from 0.7645 down to 0.7593 with copper being hit due to the downgrade.
There are no data releases for Asia today and instead, eyes are looking towards US data due to the build-up of doubts about the inflation outlook in the US. This has been pressuring the dollar and a key data set comes in the core PCE inflation reading on Thursday with investors mindful of the Fed's structural low US inflation concerns as noted in the latest FOMC minutes. Meanwhile, the Fed fund futures yields continued to price the chance of a December rate hike near 100% and the central bank divergence should keep the bulls on their toes for further corrections in the dollar.
- NZD/USD: a further squeeze higher today cannot be ruled out - ANZ
Valeria Bednarik, chief analyst at FXStreet explained that in the meantime, the 4 hours chart shows that the pair is gaining bearish traction, as in the 4 hours chart, the price broke below a bullish 20 SMA, while technical indicators entered bearish territory. "The Momentum is actually neutral, but the RSI presents a bearish slope, favoring a bearish extension on a break below 0.7592, the daily low."