AUD/USD is moving back and forth as the bears and bulls struggle to dominate amid a relatively quiet session this Friday.
At the time of writing, the pair is trading at 0.7282, up 0.05%.
The AUD mainly traded sideways overnight as the US dollar index finally paused for a breath. The market remains in 'sell-on rallies' mode, which will likely keep the AUD on the back foot over the coming days.
Along with this, market participants are again optimistic over the Reserve Bank of Australia (RBA) reports on the rate hike. However, The RBA policymakers have constantly been cautioning investors that the much-anticipated rate hike is not going to be announced anytime soon.
On November 16, RBA Governor Philip Lowe said, "the economy and inflation would have to turn out very differently from our central scenario for the Board to consider an increase in interest rates next year." He further went on to say, "It is likely to take time to meet the condition we have set for an increase in the cash rate and the Board is prepared to be patient."
Investors also take note of Chinese property concern that looms over the aussie. On Thursday, S&P Rating agency statement said that "despite recent bond coupon payments a default is still "highly likely" for China Evergrande Group," Meanwhile, another Rating agency Moody' also iterated its concern over Chinese property developers, it added, "liquidity stress will continue amid tight credit conditions and lowered sales."
Also, the positive news for the aussie that surfaced Thursday was that Victoria was about to ease of COVID-19 lockdown, providing a much-needed boost to the economy in the upcoming Q4.
Looking ahead, besides the Fedspeak, there is no major data and events that will provide incentives to AUD/USD traders. However, the RBA rate hike and US inflation expectations will keep the investors focussed.
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