- AUD/USD seesaws near more than five-week low after ANZ data dropped to four year low.
- Markets keep the greenback bid high as trade headlines have been positive.
- Comments from the RBA and Fed policymakers will provide fresh impulse.
AUD/USD responds to downbeat consumer confidence data while taking rounds to 0.6775 during the initial Asian trading session on Tuesday.
The weekly release of the Australia and New Zealand Banking Group (ANZ)-Roy Morgan Australian Consumer confidence dropped to the four-year low of 2.8% for the data collected during this weekend.
The Aussie pair recently dropped to the lowest since October 17 as the US dollar (USD) rose across the board. The market’s optimism surrounding phase one trade deal between the United States (US) and China seems responsible to the greenback’s latest rise. The same could be witnessed in Wall Street’s run-up to close at record highs. However, neither the AUD/USD pair nor the US 10-yeat treasury yields, now down two basis points (bps) to 1.75%, could benefit from market’s risk-on.
The Reserve Bank of Australia’s (RBA) Deputy Governor Guy Debelle is scheduled to speak on “Employment and Wages” at the Australian Council of Social Service National Conference in Canberra. Following that the US Federal Reserve (Fed) Chairman Jerome Powell will be speaking at the Providence Chamber of Commerce Annual Meeting in Rhode Island. Adding to the RBA/Fed speakers’ list will be RBA Governor Philip Lowe, around 09:05 GMT, followed by the Fed Governor Lael Brainard.
Although all of the RBA/Fed policymakers are up for a speech at different events than that hosted by the respective central banks, investors will seek confirmations of the recent weakness in data for near-term directions.
Other than the policymakers’ speeches, the US numbers concerning housing, manufacturing and Consumer Confidence will also be the key to watch.
Technical Analysis
Pair’s sustained trading below an ascending trend line since October-start, at 0.6795 now, directs it towards mid-October low near 0.6720. Alternatively, 21-day Exponential Moving Average (EMA) around 0.6820 can question the pair’s pullback beyond 0.6795 resistance line.
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