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  • AUD/USD seesaws around 50-day EMA as trade pessimism, greenback strength dominates market sentiment.
  • Australia’s Westpac Consumer Confidence and the Wage Price Index are immediate catalysts to watch.
  • The US CPI, Powell’s Testimony will decorate the economic calendar afterward.

With no clarity over the trade US-China trade deal, the AUD/USD pair remains under pressure for the fourth consecutive day while trading around 0.6840 amid initial Wednesday morning in Asia.

The Aussie pair recently failed to benefit from the National Australia Bank’s (NAB) sentiment numbers amid broad market pessimism surrounding the trade deal between the United States (US) and China. However, the return of the US traders from Veterans Day holiday could help the US dollar (USD) to recover most of Monday’s losses during the previous day.

The US President Donald Trump, in his latest speech, from the New York Economic Club luncheon, again signaled nearness to the trade deal with China. However, the Republican leader didn’t refrain from the odds of a substantial increase in Chinese tariffs if they fail to make a deal. Elsewhere, the White House (WH) Economic Adviser Larry Kudlow also emphasized that the US had a very unfair relationship with China through the years so the deal has to be good for the US and US workers.

On the other hand, the Fedspeak has also been mixed with sustained support to the current monetary policy but the US President and WH Adviser both kept criticizing the Federal Reserve’s (Fed) role.

With this, the US 10-year treasury yields stay little changed to 1.92% while its Australian counterparts range between 1.28% and 1.31%.

Moving on, traders will now concentrate on November month Westpac Consumer Confidence, expected 2% versus -5.5% prior, ahead of the third quarter (Q3) Wage Price Index data that is likely staying unchanged at 2.3% on YoY and to decline from 0.6% previous to 0.5% on QoQ.

It should also be noted that Testimony from the Fed Chairman Jerome Powell and Consumer Price Index (CPI) data from the US will be in the spotlight during the later part of the day. Investors will look for signs to confirm the latest bullish bias concerning the Fed’s monetary policy stand while also keeping eyes on trade headlines.

Technical Analysis

50-day Exponential Moving Average (EMA) level of 0.6832 and a rising trend-line since October 02, at 0.6815 now, can keep limiting the pair’s near-term declines. On the contrary, 100-day EMA level of 0.6856 and 0.6900 seem to be the immediate upside barriers.