- AUD/USD remains pressured during four-day downtrend.
- Australia witnesses more local lockdowns, bond moves add to USD strength.
- RBA, PBOC couldn’t placate bears, risk catalysts are the key.
AUD/USD drops to a fresh low since November 2020, before recently bouncing off, down 0.30% around 0.7317, ahead of Tuesday’s European session. The risk barometer earlier paused near the yearly low as sellers awaited more clues following dull RBA minutes and the PBOC inaction. However, the US dollar strength and the Delta covid variant fears recently dragged the quote.
The US Dollar Index (DXY) picks up bids to 92.88, up 0.06% during the four-day uptrend, near a three-month high by the press time. In addition to the virus woes, pause in the US Treasury yields’ consolidation near February lows seems to favor the DXY bulls of late.
South Australia announces fresh seven-day lockdown whereas Victoria extends activity restrictions by a week. On the positive side, Sydney marks the fourth day of lower covid infections as well as Aussie Health Minister Greg Hunts’ tweet signaling one million Pfizer vaccine doses a week will land in Australia.
It should be noted that the updates over the US President Joe Biden’s infrastructure bill seem to have probed the US bond buyers. That said, the US 10-year Treasury yields one basis point (bp) to 1.19% by the press time. US Senate Majority Leader Chuck Schumer announced a procedural vote to be held on US President Joe Biden’s infrastructure bill on Wednesday.
Elsewhere, the US alleged China over the recent cyber attack while also raising travel alert levels for the UK on a different page.
Amid all these plays, stock futures print mild gains but Asia-Pacific shares remain offered and keep AUD/USD sellers hopeful. Though, US housing numbers and further upside over the risk factors discussed above become crucial for fresh direction.
AUD/USD bears need daily closing below 0.7340, comprising tops marked during September and November 2020, to attack October highs near 0.7245. Until then, a corrective bounce towards the 0.7400 threshold, followed by July 09 lows surrounding 0.7410 can’t be ruled out.
Additional important levels
|Today last price||0.7326|
|Today Daily Change||-19 pips|
|Today Daily Change %||-0.26%|
|Today daily open||0.7345|
|Previous Daily High||0.7417|
|Previous Daily Low||0.7321|
|Previous Weekly High||0.7504|
|Previous Weekly Low||0.7391|
|Previous Monthly High||0.7794|
|Previous Monthly Low||0.7477|
|Daily Fibonacci 38.2%||0.7358|
|Daily Fibonacci 61.8%||0.738|
|Daily Pivot Point S1||0.7305|
|Daily Pivot Point S2||0.7265|
|Daily Pivot Point S3||0.7209|
|Daily Pivot Point R1||0.7401|
|Daily Pivot Point R2||0.7457|
|Daily Pivot Point R3||0.7497|
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.