Economy Forex News

AUD/USD bulls fail to regain 0.7250

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  • AUD/USD is down 0.14% amid thin liquidity conditions due to the US Thanksgiving holiday.
  • The pair remained subdued in the overnight session, within the range 0-7170-0-7200.
  • AUD/USD is biased to the downside as long as it stays below 0.7250.

AUD/USD declines against the dollar, down 0.15%, trading at 0.7188 during the day at the time of writing. Market sentiment as the European session progresses is upbeat. As European indices trade higher, despite thin liquidity conditions, attributed to the US Thanksgiving holiday.

It is important to highlight, however, that Europe has become the new core of COVID-19, with cases reaching new highs. As winter approaches in Europe, countries such as Slovakia, the Czech Republic, the Netherlands, and Hungary have reported new highs in daily infections.

AUD/USD

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Austria, which re-imposed a two-week shutdown, and Germany, which began enforcing harsher limits in the wake of the country’s worst-ever COVID-19 rise, joined them.

With an empty economic agenda from Australia, the AUD/USD moved sideways overnight in the 0.7170-0.7200 zone. A decline of 2.2 percent in the third quarter did not impact the AUD/USD pair. Which was higher than analysts’ expectations of a 2 percent contraction. In the United States, the Thanksgiving holiday would delay the release of new macroeconomic data until the following week.

October retail sales will be included in Australia’s economic calendar on Friday. This fact could affect the AUD/USD pair. As well as the US dollar’s characteristics and market sentiment.

AUD/USD Price Forecast: Technical Outlook

A downward slope is evident in the daily moving averages (DMA) above the price of the pair. Giving it a downward bias. The collapse of an uptrend line on Friday last week has further hurt the bullish outlook for the Australian dollar. Followed by significant selling pressure on Monday. As AUD bulls have struggled to reclaim the 0.7250 level.

If the downturn continues, the first support level will be the September 30 low of 0.7169. If the latter is broken, a retest of the 2021 bottom at 0.7105 is possible.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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