AUD/USD stuck in a 20-pip range
- AUD/USD stuck in a narrow range.
- Little action in related markets.
- Awaits US data.
AUD/USD is being squeezed in a 20-pip range of 0.7570-0.7550 as traders await fresh cues.
There is little action in the related markets. Gold continues to trade in the sideways manner $1275. Copper is flatlined as well.
Also, the China Caixin PMI released earlier today disappointed expectations. Further, throughout the week, the spot has not been able to get past the resistance offered by the trendline sloping downwards from the Sep. 20 high and Oct. 20 high.
Consequently, there is little motivation for traders to bid for the Aussie. On the other hand, the postponement of the Senate tax bill vote has kept a lid on the gains in the USD.
Still, there is scope for a big move during the North American session following the release of US ISM manufacturing PMI.
AUD/USD Technical Levels
Jim Langlands from FX Charts writes-
"AudUsd is heavy at the end of the US session and seems set to remain so in the days ahead. The spike higher today in US yields will not help the Aud as we approach the December FOMC Meeting and a test of 0.7500 looks increasingly possible. Housing data and the Australian/Caixin China Manufacturing PMI are due today along with the local Housing data.
1 hour/4 hour indicators: Turning lower
Daily Indicators: Pointing mildly higher
Weekly Indicators: Neutral
Preferred Strategy: Another choppy session could be in store although I lean towards selling into rallies, looking for an eventual test of 0.7500, and lower, as we approach the next Fed meeting on Dec 13."