November 08,2022 12:16 AM ET
The AUDUSD renews its intraday low around 0.6465 as it prints slight losses early Tuesday morning in Europe. The latest losses in the Australian pair broke a two-day uptrend while testing the bulls at a one-week high. As such, the price justified its status as a "risk barometer" while tracking mixed signals from Australian data.
National Australia Bank (NAB) business conditions declined to 22 in October from the previous 25, down from the expected 20. In addition, NAB business confidence fell to zero during the month indicated, versus the market consensus of a five-digit figure.
Earlier in the day, Westpac's Australian consumer confidence slipped to -6.9% in November from -0.9% previously. In addition, the ANZ-Roy Morgan weekly consumer confidence print fell to its lowest level since April 2020, at 78.7 at its highest. The report's details also mentioned that inflation expectations were the highest since the data was first released in April 2010.
On the other hand, China reported the biggest jump in fresh daily coronation figures since April, which in turn justifies the Dragon Nation's earlier defense of the zero-covation policy.
In addition, indecision over the US Federal Reserve's (Fed) next move and a cautious mood ahead of the US Consumer Price Index (CPI) for October, as well as the US mid-term elections, also underpinned the corrective rebound in the US dollar.
Looking ahead, comments from Reserve Bank of Australia (RBA) Governor Philip Lowe will be crucial for AUDUSD traders amid recent bearish statements from Australian central bankers that weighed on the price earlier. Also important will be risk catalysts and inflation figures from the U.S. and China, due for release on Thursday.
AUDUSD pulls back from the confluence of resistances at 0.6410–15, including the 50-DMA and a one-month old downtrend line, which in turn directs sellers towards the 10-DMA support near 0.6420.