On Tuesday, people buy the AUD/USD pair when it falls to around 0.6640, and they keep buying through the early European session. Spot prices have increased during the day and are now above the 0.6700 barriers. More US Dollars were sold in this move.

The AUD/USD pair gets support from several factors that keep the Greenback from taking advantage of the 200-day Simple Moving Average’s rise overnight (SMA). The FOMC meeting minutes from November this week showed a dovish assessment of the meeting. It confirmed the market’s expectations for a smaller rate hike of 50 bps in December. It hurts the USD, a safe currency, and helps the risk-averse Aussie.

But the worsening COVID-19 scenario in China should make the market less optimistic and hurt the Australian Dollar, which is a proxy for China. On Monday, China reported that the number of people infected with COVID-19 was again at a record high. More restrictions led to protests in many cities. It makes people worry about a slowdown in the economy and could bring down the market’s mood.

Also, the hawkish comments made by crucial FOMC members over the past 24 hours should help limit the Dollar’s drop and keep the AUD/USD pair from increasing. James Bullard, president of the Fed’s St. Louis branch, John Williams, president of the Fed’s New York branch, and Lael Brainard, vice chair of the Fed, all said that rates would likely go up again. It warns traders who are too confident in the stock market and want to position themselves for more gains.

On the other hand, the AUD/USD pair has ended a two-day losing streak and will now depend on how the USD price moves. The US Consumer Confidence Index from the Conference Board will release in the early North American session. But Fed Chair Jerome Powell’s speech on Wednesday and this week’s important US economic data, especially Friday’s NFP report, will be the most important things.

Conclusion

In the last 14 days, the AUD/USD has gained 100 pips. It has a moderate amount of change.