AUDUSD fails to cheer China’s return amid cautious mood

Global markets begin the key week comprising multiple central bank events and top-tier on a sluggish note. Also should have added to the market’s volatility can be China’s return from one-week-long holidays. However, anxiety ahead of the key catalysts kept traders on the dicey floor and probing the risk barometer AUDUSD pair.

It’s worth noting that the US Dollar struggles to extend the two-day rebound whereas the Treasury bond yields retreat. 

Further, the Gold price prints mild gains while snapping a two-day downtrend but the Oil price fails to recover.

USDJPY is among the biggest gainer of the US Dollar weakness, as well as the chatters surrounding BoJ’s inflation targeting, whereas USDCAD occupied the other end due to softer prices of Oil, Canada’s main export earner.

It should be observed, however, that the BTCUSD and ETHUSD retreat from multi-day highs amid industry-negative headlines and consolidation of recent gains as the key week begins.

Following are the latest moves of the key assets:

• Brent oil drops to $85.80 while reversing the previous day’s corrective bounce.
• Gold prints the first daily gains in three, mildly bid near $1,930 at the latest.
• USD Index remains sluggish near 102.00 after two-day rebound.
• Wall Street closed with mild gains but the Asia-Pacific bulls cheered China’s return. However, equities in Europe and the UK are mildly offered at the latest.
• BTCUSD and ETHUSD ease from the multi-day high to near $23,600 and $1,630 as we write.

China struggles to entertain markets

Although headlines from China suggest an uptick in holiday spending and a downtrend in the Covid numbers, the market players fail to cheer the risk-positive headlines amid anxiety ahead of the all-important Federal Reserve (Fed) monetary policy meeting. Also important will be China’s monthly activity data, as well as the US jobs report and monetary policy meeting of the European Central Bank and the Bank of England (BoE).

Apart from the pre-event anxiety, chatters that the BoJ may move its 2.0% inflation target to a long-term objective, as suggested by a government panel, weighed on the Treasury bond yields and the US Dollar. 

On a different page, mixed prints of New Zealand trade numbers and Australia’s ability to keep the S&P Global rating intact also failed to offer any entertainment to the NZDUSD and AUDUSD traders, mildly offered by the press time.

EURUSD and GBPUSD print mild losses as the major pairs consolidate recent gains amid a sluggish session and mixed risk catalysts.

Moving on, the Gold price remains depressed after a two-day downbeat but fails to please the sellers while Brent oil reverses the previous day’s rebound amid fears of more supplies.

Elsewhere, Nigeria’s limit to ATM cash withdrawal contrasts with fears of regulatory moves and the US dollar rebound to weigh on the BTCUSD and ETHUSD prices.

• Strong buy: GBPUSD
• Strong sell: ETHUSD, USDJPY
• Buy: USD Index, USDCAD, Nasdaq, EURUSD
• Sell: DAX, FTSE 100, gold, BTCUSD, AUDUSD

Second-tier data to offer slower start to the key week

Sentiment data from Eurozone will join the US Dallas Fed Manufacturing Index to offer a slower start to the key week. However, major attention will be given to the sentiment surrounding the central banks and China for clear directions.

May the trading luck be with you!