• AUD/USD reverses an intraday dip to a two-week low, though lacks follow-through.
  • Hawkish Fed expectations, recession fears underpin the USD and should cap gains.
  • Acceptance below the 50 DMA supports prospects for a further depreciating move.

The AUD/USD pair stages a modest bounce from a two-week low touched earlier this Friday and moves back above the 0.6900 mark during the early European session. The pair is currently placed near the top end of its daily trading range, though any meaningful upside seems elusive and the attempted recovery runs the risk of fizzling out rather quickly.

Growing worries about a global economic downturn continue exerting downward pressure on commodity prices, which, along with a softer risk tone, might act as a headwind for the risk-sensitive aussie. Apart from this, the prevalent bullish sentiment surrounding the US dollar, bolstered by hawkish Fed expectations, should further contribute to keeping a lid on the AUD/USD pair.

The recent hawkish remarks by several Fed officials and the incoming positive economic data reaffirm market speculations that the US central bank would stick to its policy tightening path. This, in turn, pushes the yield on the benchmark 10-year US government bond back closer to the 3.0% threshold and remains supportive of the ongoing USD positive move to a one-month high.

The fundamental backdrop suggests that the path of least resistance for the AUD/USD pair is to the downside. Even from a technical perspective, the overnight break below the 50-day SMA could be seen as a fresh trigger for bearish traders. Hence, any subsequent strength might still be seen as a selling opportunity amid absent relevant market-moving economic releases from the US.

Nevertheless, the AUD/USD pair remains on track to register heavy weekly losses. Bearish traders, however, might wait for some follow-through selling below the monthly low, around the 0.6870 region, before positioning for any further losses.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6908
Today Daily Change -0.0010
Today Daily Change % -0.14
Today daily open 0.6918
 
Trends
Daily SMA20 0.6985
Daily SMA50 0.6923
Daily SMA100 0.7063
Daily SMA200 0.7144
 
Levels
Previous Daily High 0.7021
Previous Daily Low 0.6892
Previous Weekly High 0.7137
Previous Weekly Low 0.6898
Previous Monthly High 0.7033
Previous Monthly Low 0.668
Daily Fibonacci 38.2% 0.6941
Daily Fibonacci 61.8% 0.6972
Daily Pivot Point S1 0.6866
Daily Pivot Point S2 0.6814
Daily Pivot Point S3 0.6737
Daily Pivot Point R1 0.6996
Daily Pivot Point R2 0.7073
Daily Pivot Point R3 0.7125

 

 

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 eyes more weakness despite higher-than-expected monthly Retail Sales data

AUD/USD eyes more weakness despite higher-than-expected monthly Retail Sales data

The AUD/USD pair is expected to slip down to near 0.6400 despite the release of the lower-than-expected monthly Retail Sales data. The economic data has landed at 0.6%, higher than the estimates of 0.4%, but lower than the prior release of 1.3%.

AUD/USD News

EUR/USD dribbles on the way to 0.9465

EUR/USD dribbles on the way to 0.9465

EUR/USD holds lower ground near the 20-year bottom, sidelined of late. Oversold RSI tests bears around January 2001 peak. Bearish MACD signals, clear break of previous support from July keep sellers hopeful.

EUR/USD News

Gold turns sideways around $1,630 as investors await Fed Powell’s speech

Gold turns sideways around $1,630 as investors await Fed Powell’s speech

Gold price is displaying a dull performance as investors have sidelined ahead of the speech from Fed chair Jerome Powell. The precious metal is juggling around $1,630.00 after a modest decline from the critical hurdle of $1,640.00.

Gold News

Led by Ethereum, institutions fail to register decent inflows for the seventh week in a row

Led by Ethereum, institutions fail to register decent inflows for the seventh week in a row

The overall state of the market has constantly been fluctuating, making it difficult to ascertain whether, going forward, investors should experience another bullish bout or sink into a bearish run. Trading above $1,300, ETH is still testing the lower lows on the charts.

 

Read more

Lower gas prices and favorable views of labor market again boost confidence

Lower gas prices and favorable views of labor market again boost confidence

The Consumer Confidence Index rose to its highest level since April, and now sits more than 12 points higher than where it was just two months ago. Falling gasoline prices and a still-tight labor market are the main reasons we have seen a recent rebound in confidence.

Read more

Forex MAJORS

Cryptocurrencies

Signatures