FxWirePro: AUD/USD extends choppy trade, 21-EMA caps upside

Chart - Courtesy Trading View 

AUD/USD was trading 0.64% higher on the day at 0.6707 at around 10:55 GMT, bias neutral.

The pair is extending choppy trade from the past few sessions, upside remains capped at 21-EMA.

Strong data from the US overnight revived fears the Federal Reserve will have to retain its hawkish stance to tame inflation.

U.S. weekly jobless claims data pointed to a still tight labour market, while the U.S. economy rebounded faster than previously estimated in Q3.

Revival in the market risk sentiment support the antipodean, while hawkish Fed expectations keep upside in the pair limited. 

Focus on U.S. personal consumption expenditures (PCE) data due later on Friday for further clues on whether inflation is continuing to moderate. 

Analysts expect US core PCE price index to rise 0.2% for November, while predicting a 4.7% rise for the twelve months through November.

Major Support Levels: 

S1: 0.6662 (55-EMA)

S2: 0.6613 (Lower BB)

Major Resistance Levels: 

R1: 0.6735 (20-DMA)

R2: 0.6858 (Upper BB)

Summary: AUD/USD capped between 21 and 55 EMAs. Bearish RSI divergence raises scope for more downside after rejection at 200-DMA. Scope for test of next major support at daily cloud.