AUD/USD: Bulls and bears jostle below 0.7400, Australia Q2 CPI, Fed eyed

  • AUD/USD seesaws inside a 20-pips trading range after recalling the bears.
  • Fears over NSW infections supersede optimism over Victoria’s unlock.
  • China stocks, virus woes elsewhere and mixed US data add to bearish momentum.
  • The art of Fed’s rejection to tapering will be the key as no policy action is expected.

AUD/USD remains sidelined, challenging the previous day’s fall, around 0.7360 during Wednesday’s Asian session. The coronavirus woes joined China’s crackdown on technology and private tuitions to weigh on the quote on Tuesday. On the same side were the pre-Fed caution and mixed US data, not to forget the deadlock of US stimulus and Sino-American tussles.

Having reported the highest daily infections since March, with 175 count, chatters over Australia’s New South Wales (NSW) to mark over 200 figure for the day are all around. The same will propel the national count to a fresh 10 month top while crossing the previous day’s 187 level. Additionally, Victoria officially exits the snap unlock but activity restrictions remain in place for the most of the state.

With the NSW outbreak pushing policymakers towards faster inoculation, Aussie PM Scott Morrison is up for a press conference around 11:00 AM Australia Time, the same when the leaders from South Australia (SA), Victoria and NSW will cross the wires.

On a different page, US-China tussles escalate over the American ban of Beijing diplomats’ visas as well as the US ties with Hong Kong and Vietnam of late. Furthermore, softer-than-expected prints of US Durable Goods Orders and housing numbers jostle the notable upward revision to the priors, as well as firmer US CB Consumer Confidence to weigh on the sentiment and AUD/USD prices.

Amid these plays, S&P 500 Futures track Wall Street’s losses, the first in six days, whereas the US 10-year Treasury yields consolidate recent losses around 1.23% by the press time.

Moving on, Australia’s Consumer Price Index (CPI) for the second quarter (Q2) expected 0.7% versus 0.6% QoQ and 3.8% versus 1.1% YoY, will be the key for AUD/USD prices for immediate direction. Should the inflation numbers meet optimistic forecasts, the quote may consolidate the latest losses to prepare for the likely drawdown post-Fed. Also important will be Aussie PM’s press conference as well as the second-tier US data.

Read: Federal Reserve Preview: Three reasons why Powell could pause, pummeling the dollar

Technical analysis

AUD/USD retreats below the monthly resistance line, around 0.7405, signaling another battle with the 0.7340 support on the way to the month’s low, also the lowest since November 2020, near 0.7290.

Additional important levels

Today last price 0.7365
Today Daily Change -0.0019
Today Daily Change % -0.26%
Today daily open 0.7384
Daily SMA20 0.7441
Daily SMA50 0.7586
Daily SMA100 0.765
Daily SMA200 0.7594
Previous Daily High 0.7391
Previous Daily Low 0.733
Previous Weekly High 0.7417
Previous Weekly Low 0.7288
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7368
Daily Fibonacci 61.8% 0.7353
Daily Pivot Point S1 0.7346
Daily Pivot Point S2 0.7308
Daily Pivot Point S3 0.7285
Daily Pivot Point R1 0.7407
Daily Pivot Point R2 0.7429
Daily Pivot Point R3 0.7468



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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD licks its wounds ahead of US consumer confidence

EUR/USD is below 1.18 but off the lows. The dollar is paring some of its gains ahead of US Consumer Confidence, final eurozone inflation data and expiry of options on Wall Street. 


GBP/USD struggles around 1.38 after weak US Retail Sales

GBP/USD is on the back foot around 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD bears seize control as focus shifts to FOMC meeting

Gold witnessed aggressive selling on Thursday and tumbled to over one-month lows. Upbeat US macro data lifted the US bond yields, the USD and exerted heavy pressure. Extremely oversold RSI on hourly charts helped limit losses amid COVID-19 woes.

Gold News

Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more