AUD/USD Current Price: 0.6924

  • Market players are cautious ahead of US inflation data and policymakers' statements.
  • The Australian macroeconomic calendar will remain empty until next Wednesday.
  • AUD/USD is under selling pressure and poised to retest its June monthly low at 0.6850.

The AUD/USD pair approaches the 0.6900 mark, down on Monday after a positive start to the week. The American dollar started the day on the back foot but managed to post a modest comeback mid-US afternoon. Market participants are struggling for direction amid inflation and recession concerns and ahead of US inflation figures to be released later in the week. At the same time, investors' attention will be on the Central Banking Forum hosted by the European Central Bank, as multiple policymakers will make public appearances and could refer to future monetary policies.

The pair is down despite modest gains among US indexes, which are barely enough to prevent a steeper slide. Wall Street is fighting to remain away from the bearish territory, a tough one amid recession fears. Meanwhile, the Australian economic calendar will remain empty until next Wednesday, when the country will release May Retail Sales, which is seen up at a modest 0.4% MoM.

AUD/USD short-term technical outlook

The AUD/USD pair peaked at 0.6958, meeting sellers around the 23.6% retracement of its latest daily decline between 0.7282 and 0.6855 in the 0.6950 area. The daily chart shows that bears keep control of the pair as it is developing below its moving averages, with the 20 SMA heading south at around 0.7050. Technical indicators remain well below their midlines, although lacking directional strength.

In the near term, and according to the 4-hour chart, the pair offers a neutral-to-bearish stance. AUD/USD has spent the day consolidating between the aforementioned Fibonacci level and a flat 20 SMA, providing intraday support at 0.6910. Technical indicators have turned marginally lower but remain within neutral levels. Critical support comes at 0.6850, June monthly low. The bearish case will be firmer if the pair breaks below it.

Support levels: 0.6910 0.6880 0.6850

Resistance levels: 0.6955 0.6990 0.7030

View Live Chart for the AUD/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

GBP/USD defends 1.1900 after mixed UK Retail Sales

GBP/USD defends 1.1900 after mixed UK Retail Sales

GBP/USD is off the lows but remains vulnerable amid mixed UK Retail Sales and broad USD strength. The UK Retail Sales surprised positively, with a 0.3% rise MoM in July. On an annualized basis, UK consumer spending fell 3.4% vs. 3.3% expected. 

GBP/USD News

EUR/USD drops towards 1.0050 amid recession woes, hawkish Fed bets

EUR/USD drops towards 1.0050 amid recession woes, hawkish Fed bets

EUR/USD holds lower ground near the monthly bottom, approaching 1.0050 as the US dollar trades firmer amid a sluggish European morning. Fears of German recession, geopolitical concerns and hawkish Fedspeak weigh on the major currency pair.

EUR/USD News

Gold: Firmer DXY directs bears towards $1,730

Gold: Firmer DXY directs bears towards $1,730

Gold price takes offers to renew monthly low near $1,750 during early Friday morning in Europe. The bullion prices register the five-day downtrend as the US dollar bulls cheer recession woes, as well as firmer US data and hopes of the Fed’s aggression vis-à-vis rate hikes.

Gold News

AVAX price will give holders an opportunity to get out before another 20% crash

AVAX price will give holders an opportunity to get out before another 20% crash

AVAX price is in a tough spot as it approaches the end of its uptrend that has been ongoing for two months. While bearish as the altcoin looks, a minor relief rally or bounce could help investors cash out before another leg down. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures