AUD/USD renews two-month highs at 0.7375, shrugging-off a big miss on the Australian Q3 Private Capital Expenditure data, as the latest leg down in the US dollar underpins. The greenback was sold-off into renewed concerns about the post-pandemic US economic recovery, reinforced by the jump in the weekly Initial Jobless Claims, which negated the sharp rebound in the GDP for the third quarter. Also, rising covid cases in the US weighed on the dollar.
The bulls now await a sustained break above the 0.7400 psychological barrier to challenge the yearly highs of 0.7416. Further north, a test of the 0.7450 barrier will come into the picture. To the downside, the daily low of 0.7357 could halt the pullback, below which the 0.7300 round number will get tested. At that level, the pattern resistance now support coincides.