The AUD/USD pair enjoyed good two-way businesses so far in Asia this Tuesday, having risen to 0.6854 highs before taking a sharp U-turn to hit fresh nine-day lows near 0.6835 region, where it now wavers.
AUD/USD fails to resist above the 100-DMA barrier
The Aussie dollar failed to sustain its uptick above the 100-DMA barrier, now at 0.6842, which was regained following a positive surprise seen in the Australian NAB Business Survey released earlier today at 0030 GMT. Australia NAB Business Survey unexpectedly improves in October
The latest leg down was mainly driven by a broad-based US dollar rebound, as concerns over the US-China trade deal and Hong Kong’s civil unrest resurged and fueled a flight to safety, with markets seeking protection in the US currency. The US dollar index recovery from the recent lows of 98.13 gained traction last hours, now sending the rates towards three-week highs of 98.40.
The AUD/USD pair also tracked the fresh selling seen in its OZ counterpart, the Kiwi, after the RBNZ survey showed New Zealand’s inflation expectations falling further in the fourth quarter of 2019. Meanwhile, rising industry expectations that the RBA could announce quantitative easing next year also likely added to the weight on Aussie.