- AUD/USD shows a lack of activity as traders await the key data.
- November month employment figures bear upbeat market consensus.
- Concerns surrounding US-China trade relations, US data will be in the spotlight.
With the market players being cautious ahead of the key data, AUD/USD trades near 0.6850 amid the initial Asian session on Thursday.
Early in the day, the Richmond Federal Reserve President Thomas Barkin praised the US-China phase-one. Though, CNBC came out with the news doubting any strong relationship while citing Beijing’s refrain from giving numbers for the import of Agricultural products to the US. Also acquiring the news phase was the US President Donald Trump’s Economic Adviser Larry Kudlow. The White House Adviser said that he will monitor China’s compliance with phase-one for 6 to 9 months.
In the absence of phase-one criticism and major data/events, the Aussie pair registered mild gains on Wednesday. The quote should have benefited from the looming concerns over US President Donald Trump’s impeachment. Some wee market polls suggest that the opposition Democrats have the numbers to make the Republican leader the third US President to be impeached in the House of Representatives. However, doubts remain as far as the Senate voting, around next week, is concerned.
Market’s risk tone seems to be on recovery with the US 10-year treasury yields rising back to 1.92% whereas S&P 500 Futures rising to 3,200 mark.
Moving on, the likely recovery in the headline Employment Change, to 14K from -19K prior, could help the Aussie buyers remain above the three-week-old rising support line. It’s worth mentioning that the Unemployment Rate and Participation Rate are expected to remain unchanged at 5.3% and 66% respectively.
While Aussie data can offer immediate direction, news concerning the US President Donald Trump’s impeachment and US-China trade headlines might keep the driver’s seat. Also, the US second-tier manufacturing and housing statistics will entertain traders during the later part of the day.
Technical Analysis
As far as the prices stay beyond short-term support line, near 0.6840 now, buyers can hold their bullish bias to confront 200-day Simple Moving Average (SMA) level near 0.6905.
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