- Australian housing data disappoints.
- Soft US dollar supports the pair.
- A slew of US economic releases ahead.
AUD/USD fell off from its 12-week highs and trades near intraday lows around 0.7325 today.
The pair faced resistance near the highest level since September 2, around 0.7375, and started the slide from there, after the release of disappointing Australian housing data. The Construction Work Done fell 2.3 Percent QoQ exceeding the two-Percent expected decline and from -0.7 Percent earlier.
The upcoming US economic events also prompted some rebalancing of portfolios contributing to the pullback in AUD/USD. Now the pair has given back some of the gains made yesterday, but the softer tone surrounding the US dollar might limit the pullback.
The risk-on mood in the global market hasn’t abated as Biden received the official go-ahead for the transition to the White House and the coronavirus vaccine rollout plans are in progress.
Another boost for the risk sentiments came from the likely nomination of former Fed Chair Janet Yellen as the next US Treasury Secretary.
Hence, traders might start dip-buying the AUD/USD as the pro-risk AUD attracts demand.
Market participants will be eyeing the US economic docket with the slated releases of preliminary (second estimate) GDP report, Durable Goods Orders, Initial Weekly Jobless Claims and final Michigan Consumer Sentiment Index for November. The FOMC minutes release, along with the listed releases, will dictate the AUD/USD directional bias ahead.