- AUD/USD prints four-day south-run to test the lowest levels since October 07.
- DXY grinds higher around 16-month top amid steady yields.
- Mildly bid stock futures, hopes of Asia-Pacific rebound and doubts over Evergrande restrict latest moves.
- US Michigan Consumer Sentiment figures to decorate calendar.
AUD/USD bears keep reins past 0.7300, down 0.10% on a day to refresh the five-week low during early Friday.
The risk barometer pair portrays indecisive markets and the firmer US dollar, amid rising bets over the Fed rate hike, during the four-day downtrend. Also weighing on the quote are the downbeat updates from China, be it concerning Evergrande or power cuts.
However, mildly bid stock futures and mixed performance of the Asia-Pacific shares join hopes of an economic recovery in the region to test the sellers.
That being said, chatters over China’s efforts to ease lending restrictions for the property sector and comments from a former advisor to the People's Bank of China, Yu Yong, suggesting that problems such as Evergrande are controllable fail to renew market optimism. The reason could be linked to the updates from the Evergrande lender Kaisa group. ''Kaisa has the most offshore debt of any Chinese developer after Evergrande and pleaded for help from creditors this week. It has coupon payments totaling over $59 million due on Thursday and Friday, with 30-day grace periods for both,'' Reuters reported.
Elsewhere, energy problems stay elevated in China and probe the year 2021 GDP, exerting additional downside pressure on the AUD/USD prices. On the same line are the Sino-American tussles over the phase 1 deal, Vietnam and Hong Kong.
Alternatively, global rating giant Moody’s latest assessment of the Asia-Pacific economies mentioned, “Most will rebound, helping to support debt stabilization at higher levels than pre-pandemic.”
Amid these plays, the US stock futures print mild gains while the Treasury yields help the US Dollar Index (DXY) to refresh the multi-day peak.
The risk catalysts may keep entertaining the AUD/USD traders, mainly the bond traders’ return after a Veterans Day holiday. Also, the US Michigan Consumer Sentiment for November, expected 72.4 versus 71.7 prior, will be additionally important.
Technical analysis
61.8% Fibonacci retracement (Fibo.) of August-October upside, around 0.7275 and a three-month-old ascending support line near 0.7240 lure AUD/USD bears until the quote stays below the 100-DMA and 50-DMA, close to 0.7366-72.