August 24, 2021

Daily U.S. Session Watchlist: AUD/USD

 Risk-taking has boosted high-yielding bets against the dollar today.

Will the optimism be enough to break AUD/USD’s short-term downtrend?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Australia manufacturing PMI slows in August – Markit

Japan’s private-sector activity hit by COVID-19 surge – PMI

Growth in French business activity eased in August -PMI

German private sector stays on growth path in August -PMI

Euro zone business boom roared on in August -PMI

Bitcoin tops $50,000, hitting a more than 3-month high

Nikkei rebounds from 8-month lows as bargain-hunters prop auto shares

Australia, NZ dollars regain footing on firmer commodities

European stocks climb after bruising week

Upcoming Potential Catalysts on the Economic Calendar:

CBI’s industrial order expectations at 10:00 am GMT

U.S. flash manufacturing and services PMIs at 1:45 pm GMT

Eurozone consumer confidence at 2:00 pm GMT

U.S. existing home sales at 2:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: AUD/USD

Risk-taking was the name of the game during the Asian session as traders priced in China reporting zero local coronavirus cases; the Fed possibly avoiding tapering talks in this week’s virtual Jackson Hole meetings, and a bit of profit-taking from last week’s selloffs.

European session traders are also on track to pick up the optimism especially after Germany and the Eurozone printed promising PMI reports.

But will today’s risk-taking be enough to break AUD/USD’s short-term downtrend?

The pair has been consolidating just above .7150 after finding support at .7100. And why not? The area not only lines up with a trend line resistance, but it’s also near the 38.2% Fib pullback of the last downswing.

If U.S. session traders pick up the risk-taking vibe, then AUD/USD could hit the higher Fib levels and maybe even visit the 100 or 200 SMAs before encountering a fresh wave of sellers.

But if the consolidation that we’re seeing means that the buyers have run out of steam, then it won’t take a lot of risk-averse headlines to drag AUD/USD back to its August lows and maybe even extend its downtrend all the way to .7000.