AUD/USD bounces-back towards 21-HMA amid an uptick in S&P 500 futures

The aussie finds respite from a rebound in the S&P 500 futures.
Falling Treasury yields lift the market mood, cap the gains in the DXY.
21-HMA offers immediate resistance while sellers remain hopefully.

Dhwani Mehta FXStreet

AUD/USD is attempting a bounce above 0.7550 in the European session, having reached the lowest levels in four months at 0.7531 earlier on.

The recovery in the aussie could be attributed to the improved market mood amid strong Euro area Manufacturing PMI reports and falling Treasury yields. This is reflective of the 0.38% uptick in the S&P 500 futures.

The negative sentiment around the US rates makes the aussie dollar more attractive as an alternative higher-yielding asset. The renewed buying interest in oil and gold prices also offer support to the commodities-linked aussie.

Markets now await the US ISM Manufacturing release for fresh trading impetus, as the unexpected drop in the Chinese Caixin Manufacturing PMI could likely remain a drag on the AUD.

AUD/USD: Technical Outlook

From a near-term technical perspective, the spot is looking to recapture the bearish 21-hourly moving average (HMA) at 0.7585 on the road to recovery.

The Relative Strength Index (RSI) has also rebounded from lows and points higher, as of writing, suggesting that there remains scope for additional recovery.

The next stop for the aussie bulls is seen at the 50-HMA of 0.7598, above which the 100-HMA at 0.7616 could be challenged.

AUD/USD: One-hour chart

Meanwhile, should the spot face rejection at the 21-HMA then a drop back towards the multi-month lows cannot be ruled.

Further south, the 0.7500 threshold could come to the buyers’ rescue.

AUD/USD: Additional levels

AUD/USD

Overview
Today last price	0.7566
Today Daily Change	-0.0032
Today Daily Change %	-0.42
Today daily open	0.7598

Trends
Daily SMA20	0.7693
Daily SMA50	0.7725
Daily SMA100	0.763
Daily SMA200	0.7385

Levels
Previous Daily High	0.7637
Previous Daily Low	0.7588
Previous Weekly High	0.7758
Previous Weekly Low	0.7562
Previous Monthly High	0.785
Previous Monthly Low	0.7562
Daily Fibonacci 38.2%	0.7618
Daily Fibonacci 61.8%	0.7606
Daily Pivot Point S1	0.7578
Daily Pivot Point S2	0.7558
Daily Pivot Point S3	0.7529
Daily Pivot Point R1	0.7628
Daily Pivot Point R2	0.7657
Daily Pivot Point R3	0.7677

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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