• AUD/USD bulls move in on critical resistance territories. 
  • Risk appetite improves and supports the commodity complex. 

At 0.7300, AUD/USD is higher by 0.12% as it oscillates between 0.7290/7300 and just below the 21-day moving average. 

In New York, the dollar fell across the board on Thursday as improved risk sentiment in global financial markets wiped out its post-Federal reserve gains. On China's return from holidays, Beijing injected fresh cash into its financial system ahead of an $83.5 million bond coupon by embattled property giant Evergrande. This, in turn, has lifted commodity currencies, equities and sank the US dollar.

US dollar on the backfoot

The US dollar currency index, DXY, which measures the greenback against a basket of six rivals, is down 0.38% at the time of writing trading at 93.081 after making its biggest daily percentage drop in a month, engulfing the Fed day bullish daily candle.

However, in the 93 areas, DXY remains near the 10-month high touched in late August of 93.73. Meanwhile, the offshore Chinese yuan has also strengthened versus the greenback to 6.4587 which also offers support to the Australian dollar. 

The improved risk appetite was reflected in Wall Street's major equity indexes, with the S&P 500 making its largest two-day percentage gain since late July. On Wednesday, the Federal Reserve said it will likely begin tapering its monthly bond purchases as soon as November which initially dented stocks and risk appetite. However, markets on Thursday have run with the positive economic outlook in the Fed's forecasts instead and have cheered the conciliate words from Evergrande's spokespeople.

Evergrande has resolved one coupon payment on a Shenzhen-traded bond but was due to pay $83.5 million in interest on a $2 billion offshore bond on Thursday and also has a $47.5 million dollar-bond interest payment next week. There is a 30-day window to arrange the payments for which the company says it endeavours to settle. 

''Evergrande Chairman Hui Ka Yan urged his executives late on Wednesday to ensure the delivery of quality properties and the redemption of its wealth management products, which are typically held by millions of retail investors in China,'' Reuters reported. 

Overall, ''risks for the AUD seem to be improving, however, sentiment from Asian asset markets will remain key,'' analysts at ANZ Bank said in a note on Friday. 

AUD/USD technical analysis

 

Overview
Today last price 0.7299
Today Daily Change 0.0054
Today Daily Change % 0.75
Today daily open 0.7245
 
Trends
Daily SMA20 0.7332
Daily SMA50 0.7332
Daily SMA100 0.7492
Daily SMA200 0.76
 
Levels
Previous Daily High 0.7297
Previous Daily Low 0.7222
Previous Weekly High 0.7377
Previous Weekly Low 0.7262
Previous Monthly High 0.7427
Previous Monthly Low 0.7106
Daily Fibonacci 38.2% 0.7269
Daily Fibonacci 61.8% 0.7251
Daily Pivot Point S1 0.7213
Daily Pivot Point S2 0.718
Daily Pivot Point S3 0.7138
Daily Pivot Point R1 0.7287
Daily Pivot Point R2 0.7329
Daily Pivot Point R3 0.7362

 

 

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

AUD/USD extends gains above 0.6900 as USD struggles

AUD/USD extends gains above 0.6900 as USD struggles

AUD/USD is extending the recovery above 0.6900, despite a cautious mood in Asia. The US dollar struggles to find demand amid US-China tension over Taiwan and aggressive Fed tightening bets after Friday's US NFP blowout. 

AUD/USD News

EUR/USD stays defensive below 1.0200 as hawkish Fed bets propel DXY ahead of US inflation

EUR/USD stays defensive below 1.0200 as hawkish Fed bets propel DXY ahead of US inflation

EUR/USD consolidates the first weekly loss in three, retreats from intraday high of late. Moody’s cut Italy’s credit rating amid political jitters, US NFP propelled hawkish Fed bets. US-China tension over Taiwan also underpins the US dollar’s safe-haven demand.

EUR/USD News

Gold sees establishment above $1,770 as DXY surrenders gains

Gold sees establishment above $1,770 as DXY surrenders gains

Gold price has chartered its territory in a narrow range of $1,771.60-1,776.30 as DXY is expecting a bumpy ride after facing barricades around 106.80. The precious metal is in a consolidation territory followed by a sheer downside move after the US Bureau of Labor Statistics reported upbeat US NFP.

Gold News

NZD/USD slips sharply from 0.6260 as RBNZ reports inflation expectations lower at 3.07%

NZD/USD slips sharply from 0.6260 as RBNZ reports inflation expectations lower at 3.07%

NZD/USD has declined to near 0.6240 on lower RBNZ inflation expectations. The RBNZ inflation expectations have declined to 3.07% vs. 3.29% reported earlier. This week, the US Inflation data holds significant importance.

NZD/USD News

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

Forex MAJORS

Cryptocurrencies

Signatures