AUDUSD in play despite dovish RBA
Gary Christie November 3, 2020 4:33 PM
The pair breaks trend posting one of the best intraday performances in a month.
The US Dollar was bearish against all of its major pairs on Tuesday while equities rallied ahead of the U.S. Election. On the US economic data front, Factory Orders increased 1.1% on month in September (+1.0% expected), compared to a revised +0.6% in August. Finally, Durable Goods Orders rose 1.9% on month in the September final reading (as expected), in line with the September preliminary reading.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 30th is expected. Automatic Data Processing's Employment Change for October is expected to show that 650K jobs were added on month, compared to 749K jobs added in September. Finally, the Trade Deficit for September is expected to shrink to 63.9 billion dollars on month, from 67.1 billion dollars in August.
The Euro was bearish against most of its major pairs with the exception of the CAD, JPY and USD. In Europe, no major economic data was released.
The Australian dollar was bullish against all of its major pairs. The pair was the largest gainer against its major pairs in Tuesday's trading after gaining 116 pips (1.64%) as traders risk appetite grew ahead of the U.S. election. The pair broke above a declining trend channel and a falling wedge reversal pattern. Could this be a resumption of the prior uptrend that began back in March? As long as 0.699 can hold as support, look for a continuation higher towards 0.725 resistance and ultimately a test of recent highs near 0.742.
Source: GAIN Capital, TradingView
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