AUD/USD attempts a recovery from multi-year lows, lacks follow-through


  • AUD/USD remained depressed amid a fresh wave of the global risk-aversion trade.
  • A modest USD pullback from multi-year tops helped ease the bearish pressure.
  • The upside seems limited and recoveries might still be seen as a selling opportunity.

The AUD/USD pair trimmed a part of its early losses to 11-year lows, albeit seemed struggling to extend the momentum further beyond the 0.6600 round-figure mark.

The pair added to its recent losses and witnessed some follow-through selling on the last trading day of the week. Pessimism about the global economy deepened further after the World Health Organization (WHO) officials warned that the novel coronavirus could spread far and wide throughout the world.

Attempted recovery lacks conviction

Concerns over deepening economic fallout from the deadly virus triggered a fresh wave of the global risk-aversion trade. This eventually dented the already weaker sentiment surrounding the China-proxy Australian dollar and dragged the pair below the 0.6600 mark for the first time since April 2009.

The pair tumbled to an intraday low level of 0.6586 but managed to find some support amid a modest US dollar pullback from multi-year tops. The risk-off mood-led downfall in the US Treasury bond yields prompted some USD profit-taking, which turned out to be the only factor that helped ease the bearish pressure.

Meanwhile, the attempted recovery lacked any strong bullish conviction and might still be categorized as some intraday short-covering amid extremely oversold conditions. Hence, any subsequent positive move runs the risk of fizzling out rather quickly and might still be seen as a selling opportunity.

Moving ahead, market participants now look forward to the US economic docket, featuring the release of flash Manufacturing and Services PMI, which might influence the USD price dynamics and produce some short-term trading impetus.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6602
Today Daily Change -0.0015
Today Daily Change % -0.23
Today daily open 0.6617
 
Trends
Daily SMA20 0.6718
Daily SMA50 0.6832
Daily SMA100 0.6827
Daily SMA200 0.6851
 
Levels
Previous Daily High 0.6698
Previous Daily Low 0.661
Previous Weekly High 0.6751
Previous Weekly Low 0.6661
Previous Monthly High 0.704
Previous Monthly Low 0.6682
Daily Fibonacci 38.2% 0.6643
Daily Fibonacci 61.8% 0.6664
Daily Pivot Point S1 0.6585
Daily Pivot Point S2 0.6553
Daily Pivot Point S3 0.6496
Daily Pivot Point R1 0.6674
Daily Pivot Point R2 0.673
Daily Pivot Point R3 0.6762

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains bid and approaches 1.1650 after US data

The persevering selling pressure in the greenback helps EUR/USD advancing to the area of daily highs near 1.1650 on Friday. The data from the US showed on Friday that the economic activity in the private sector continued to expand at a robust pace in early October.

EUR/USD News

GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.

GBP/USD News

GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.

GBP/USD News

Crypto bulls unfazed by flash crash

BTC closed more than 5% lower on the Thursday session, but buyers have stepped in to hold the Tenkan-Sen as support. ETH action shows that the recent rejection has caused some indecision. XRP does not have far to move to initiate a massive bullish breakout.

Read more

Apple talks over battery supplies for EV stall-Reuters

Apple (AAPL) is on a steady move higher ahead of results next week. We have had solid earnings from big names already such as Tesla (TSLA) and Netflix (NFLX), but Apple is the biggest one of all and will be the highlight of the earnings season for many.

Read more

Forex MAJORS

Cryptocurrencies

Signatures