AUD/USD advances beyond 0.7300 on USD weakness, optimism at home

AUD/USD extends bounce off 0.7291 to refresh intraday high.
US dollar remains on the back foot as jobs report raises doubts over Fed tapering.
NSW ‘freedom day’, easing in infections keep buyers hopeful.
US holiday, light calendar restricts immediate moves ahead of key Wednesday.

Anil Panchal FXStreet

AUD/USD takes the bids to refresh intraday high to 0.7325, up 0.15% on a day during early Monday.

The Aussie pair began the week on a back foot due to the weekend headlines challenging market sentiment. However, softer US dollar joined hopes of overcoming the virus sooner at home recently favored the bulls.

Having witnessed over 70% vaccination rate, New South Wales (NSW) reopened after over 100 days of the virus-led restrictions. On this occasion, NSW Premier Dominic Perrottet said, per the Sky News, “It's been a difficult 100 days but the efforts that people have made right across the state, to go out, to get vaccinated, has enabled this great day.”

On the same line, Australian Treasurer Josh Frydenberg tweeted, “The NSW economy is ready for lift-off! NSW success will be Australia’s success, & will reignite the national economy. While our economy has been hit by Delta, we know from previous experiences during the pandemic our economy does bounce back & strongly.”

It’s worth noting that Aussie covid infections have been lower in the last three days, around 2,140 at the latest, which in turn keeps buyers hopeful.

Furthermore, the US Dollar Index (DXY) extends Friday’s NFP-led losses, favoring the AUD/USD buyers, despite fears of the fresh Sino-American tussles over phase one deal commitments and the Aussie-China tensions concerning Taiwan and trade issues.

Amid these plays, S&P 500 Futures prints 0.25% intraday downside, tracking Friday’s Wall Street performance, while the US 10-year Treasury yields remain inactive amid an off in bond trading in the US due to Columbus Day.

Given the US holiday and a light calendar at home, AUD/USD may rely on the risk catalysts for fresh impulse ahead of Wednesday’s Federal Open Market Committee (FOMC) Minutes for the latest monetary policy meeting.

Read: The Week Ahead: Fed Minutes, US CPI, ASOS, Entain and US bank Q3 earnings

Technical analysis

Unless providing a daily closing below 50-DMA, around 0.7305 by the press time, AUD/USD remains directed towards a downward sloping resistance line from June, near 0.7350.

Additional impotant levels

Overview
Today last price	0.7319
Today Daily Change	0.0010
Today Daily Change %	0.14%
Today daily open	0.7309

Trends
Daily SMA20	0.7276
Daily SMA50	0.7307
Daily SMA100	0.7431
Daily SMA200	0.7579

Levels
Previous Daily High	0.7339
Previous Daily Low	0.7288
Previous Weekly High	0.7339
Previous Weekly Low	0.7226
Previous Monthly High	0.7478
Previous Monthly Low	0.717
Daily Fibonacci 38.2%	0.7307
Daily Fibonacci 61.8%	0.7319
Daily Pivot Point S1	0.7285
Daily Pivot Point S2	0.726
Daily Pivot Point S3	0.7233
Daily Pivot Point R1	0.7336
Daily Pivot Point R2	0.7363
Daily Pivot Point R3	0.7388

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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