AUD/USD analysis: steeper decline expected on a break below 0.7370

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7377

Australian macroeconomic calendar to remain empty this Tuesday.
Aussie dragged lower by the soft tone of base metals, equities.

The AUD/USD pair met sellers in the 0.7440 price zone, retreating all the way down to the 0.7370 support region, confined to familiar levels. A decline in base metals and equities is to blame for the daily decline, while late US afternoon, there were rumors making the rounds about upcoming US GDP being closer to 5.0%, justifying late dollar's strength. There were no macroeconomic releases in Australia, and the calendar will remain also empty this Tuesday, with the pair then, taking clues from stocks and commodities' behavior. The pair offers a neutral-to-bearish short-term technical stance, as, in the 4 hours chart and after meeting sellers around a bearish 200 SMA, it settled also below the 20 and 100 SMA. The Momentum indicator in the mentioned chart eases in positive territory, while the RSI heads south around 45, this last supporting additional slides without confirming them. A break below the 0.7370 level should favor a steeper decline toward the 0.7300 region. Whether the pair can extend its decline below this last or not, would most likely be linked to US indexes' direction these upcoming days.

Support levels: 0.7370 0.7330 0.7300

Resistance levels: 0.7445 0.7490 0.7520

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

Japanese Yen edges up but remains close to the 160.00 intervention threshold

The Japanese Yen edges up against the US Dollar on Friday, but the USD/JPY pair remains above 159.90 at the time of writing, unable to put a significant distance from the 160.00 level, considered the limit of tolerable JPY weakness for Japanese authorities.

Gold returns to the red, awaits US NFP

Gold price is looking to test the weekly lows, while in the red near $4,450 in the early European session on Friday. The precious metal remains vulnerable amid ongoing geopolitical turmoil. Traders will closely monitor the developments surrounding the US-Iran peace deal and the US May employment report later on Friday.

Arthur Hayes' “Holy Trinity” is dead: Exits Zcash after Orchard Pool exploit

Arthur Hayes has entirely dumped his “Holy Trinity” holdings by offloading his Zcash holdings on Friday. The privacy coin is down 13% so far on Friday, extending Thursday’s 26% decline after an Orchard Shielded Pool audit revealed a critical vulnerability that allowed the undetectable minting of fake coins. Hayes continues to hold Worldcoin ahead of the upcoming SpaceX Initial Public Offering, on the chance of a “high-beta proxy” rally.

Nonfarm Payrolls set to show stable labor market in May as markets digest Fed hawkish shift

The United States Bureau of Labor Statistics will release the Nonfarm Payrolls data for May on Friday at 12:30 GMT. Investors expect NFP to rise by 85K following the surprisingly strong 185K and 115K increases recorded in March and April, respectively.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.