AUD/USD bounces off fresh eight-month low near 0.7300 amid mixed clues


  • 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.

Technical analysis

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

Overview
Today last price 0.7326
Today Daily Change -19 pips
Today Daily Change % -0.26%
Today daily open 0.7345
 
Trends
Daily SMA20 0.7494
Daily SMA50 0.7627
Daily SMA100 0.7669
Daily SMA200 0.7588
 
Levels
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

 

 

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