AUDUSD retreats towards 0.6450 as market’s optimism stalls, Aussie data softens

• AUDUSD bulls take a breather at one-week high, pauses two-day uptrend.
• Australia’s Westpac Consumer Confidence eased in November, inflation expectations rally.
• Markets turn dicey in search of fresh clues as previous risk-on mood fades.
• Aussie NAB data, headlines from China, US can entertain traders ahead of Thursday’s US CPI.

AUDUSD prints mild losses around 0.6470 as bulls take a breather around the weekly top following a two-day uptrend. In doing so, the Aussie pair takes clues from the downbeat data from home, as well as from the market’s cautious mood.

That said, Australia’s Westpac Consumer Confidence slumped to -6.9% in November versus -0.9% prior.

Earlier in the day, the weekly print of ANZ-Roy Morgan Consumer Confidence dropped to the lowest levels since April 2020, to 78.7 at the latest. The details of the report also mentioned that the inflation expectations were the highest since the data was first released in April 2010.

Elsewhere, optimism surrounding the US Federal Reserve’s (Fed) rate hikes faded after the policymakers suggest nearness to the pivot rate. Also weighing on the US dollar could be the recently mixed US jobs report and a Reuters report suggesting that four policymakers were favoring smaller rate hikes.

Against this backdrop, Wall Street closed with gains and the US Treasury yields were firmer too. However, the US Dollar Index (DXY) remained pressured. That said, S&P 500 Futures remain directionless at the latest.

Moving on, AUDUSD pair traders may await the National Australia Bank’s (NAB) Business Conditions and Business Confidence indices for October for immediate directions. However, major attention will be given to Thursday’s key US Consumer Price Index (CPI) for October.

To sum up, AUDUSD buyers need fresh catalysts to extend the latest run-up, in absence of which the bears are ready to retake control, at least ahead of Thursday’s US CPI.

Technical analysis

AUDUSD bears can remain hopeful unless the quote offers a daily closing beyond the 0.6410-15 resistance confluence including the 50-DMA and a one-month-old descending trend line.