AUD/USD advances beyond 0.7350 as USD struggles to preserve its strength


  • AUD/USD remains on track to close with strong gains.
  • US Dollar Index edges lower on Wall Street rally.
  • RBA's Debelle says he is not convinced negative rates would work.

The AUD/USD pair climbed to its highest level since early September at 0.7368 but lost its traction ahead of the American session. After edging lower toward 0.7300, the pair regained its traction in the late American session and was last seen gaining 0.93% on the day at 0.7352.

During the Asian trading hours, Reserve Bank of Australia's (RBA) Deputy Governor Guy Debelle said that he was not convinced that negative rates would work in Australia. Meanwhile, the data published by the Australian Bureau of Statistics revealed that Exports and Imports in October rose by 6% and 8%, respectively.

DXY fails to hold in the positive territory

In addition to the RBA commentary, the upbeat market mood provided a boost to the risk-sensitive AUD on Tuesday. Although the greenback took advantage of the rising US Treasury bond yields in the early American trading hours and recovered its losses, the US stock market rally caused the US Dollar Index to turn south.

As of writing, the Dow Jones Industrial Average and the S&P 500 were both up around 1.7% on a daily basis and the DXY was down 0.26% at 92.26.

Meanwhile, the data from the US showed that the Conference Board's Consumer Confidence Index fell to 96.1 in November from 101.4 in October but had little to no impact on market sentimet.

There won't be any significant macroeconomic data releases from Australia on Wednesday and the market's risk perception is likely to remain the primary driver of AUD/USD's movements.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7353
Today Daily Change 0.0069
Today Daily Change % 0.95
Today daily open 0.7284
 
Trends
Daily SMA20 0.7215
Daily SMA50 0.7178
Daily SMA100 0.7171
Daily SMA200 0.6843
 
Levels
Previous Daily High 0.7357
Previous Daily Low 0.7264
Previous Weekly High 0.734
Previous Weekly Low 0.7254
Previous Monthly High 0.7244
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.73
Daily Fibonacci 61.8% 0.7322
Daily Pivot Point S1 0.7246
Daily Pivot Point S2 0.7209
Daily Pivot Point S3 0.7154
Daily Pivot Point R1 0.7339
Daily Pivot Point R2 0.7394
Daily Pivot Point R3 0.7431

 

 

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