AUD/USD: Bulls ease control but stay in power around 0.7750 amid mixed sentiment


  • AUD/USD seeks fresh clues to extend two-day uptrend.
  • Doubts over tapering, cautious sentiment before the key Thursday and trade/political tussles concerning China weigh on the mood.
  • Mixed messages over covid, vaccines trouble traders amid a light calendar.

AUD/USD holds onto the previous two days’ gains inside a range surrounding 0.7750 during the early Tuesday morning in Asia. Friday’s downbeat US jobs report and chatters over the Fed’s next move helped the Aussie pair during the recent days. Though, a lack of major catalysts and indecision ahead of Thursday’s key events trouble the bulls of late.

Fears battle optimism with eyes on central banks, inflation…

Although the US jobs report eased concerns over the tapering, mixed comments from US Treasury Secretary Janet Yellen relating to inflation, spending and interest rates probed optimism the previous day. On the same line were developments relating to US President Joe Biden’s infrastructure spending plan and the Group of Seven (G7) meeting results. While updates from the GOP suggest no counteroffer, the G7 agreed over the minimum 15% tax proposal.

Elsewhere, the US Secretary of State vows to hold China accountable for covid origin, as per the Axios, while the news of the US-Taiwan trade talks could also tease Beijing and escalate the tussles among the world’s top two economies. Additionally, UK Trade Secretary Liz Truss backed Australia in its trade complaint against China.

On the risk-positive side, also positive for the AUD/USD prices due to its risk-barometer status, were the steady vaccinations and the western policymakers’ confidence in reopening the economic activities curbed due to the virus. Not only the US and the UK but the latest updates from Ontario also suggest that the Canadian province is up for unlock three days before the scheduled expiry. At home, the covid cases broke the downward trajectory with the 11 cases registered during the weekend.

Amid these plays, Wall Street closed mixed and the US 10-year Treasury yields struggled to hold 1.56% level whereas the US dollar index (DXY) remains pressured by the press time.

Given the mixed sentiment and a lack of clarity, AUD/USD traders may look towards risk catalysts, amid a light calendar in Asia, for fresh impulse.

Technical analysis

A daily close beyond 21-day SMA and monthly resistance line, now support, keeps AUD/USD buyers hopeful. However, the further upside has the 0.7800 threshold and 0.7820 as challenges. Meanwhile, the Aussie pair’s drop below 0.7750 will have a 50-day SMA level near 0.7725 as a strong support to break before testing the 0.7680-75 support zone.

Additional important levels

Overview
Today last price 0.7756
Today Daily Change 16 pips
Today Daily Change % 0.21%
Today daily open 0.774
 
Trends
Daily SMA20 0.7752
Daily SMA50 0.7722
Daily SMA100 0.7727
Daily SMA200 0.7536
 
Levels
Previous Daily High 0.7747
Previous Daily Low 0.765
Previous Weekly High 0.7774
Previous Weekly Low 0.7644
Previous Monthly High 0.7892
Previous Monthly Low 0.7674
Daily Fibonacci 38.2% 0.771
Daily Fibonacci 61.8% 0.7687
Daily Pivot Point S1 0.7677
Daily Pivot Point S2 0.7615
Daily Pivot Point S3 0.758
Daily Pivot Point R1 0.7774
Daily Pivot Point R2 0.7809
Daily Pivot Point R3 0.7871

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD gains traction and rises toward 1.0850 on Friday. The improvement seen in risk mood makes it difficult for the US Dollar (USD) to preserve its strength and helps the pair erase a portion of its weekly losses. 

EUR/USD News

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD staged a rebound and stabilized above 1.2700 after dropping to a weekly low below 1.2680 in the early European session in response to the disappointing UK Retail Sales data. The USD struggles to find demand on upbeat risk mood and allows the pair to hold its ground. 

GBP/USD News

Gold rebounds to $2,340 area, stays deep in red for the week

Gold rebounds to $2,340 area, stays deep in red for the week

Gold fell nearly 4% in the previous two trading days and touched its weakest level in two weeks below $2,330 on Thursday. As US Treasury bond yields stabilize on Friday, XAU/USD stages a correction toward $2,340 but remains on track to post large weekly losses.

Gold News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin (DOGE), died early on Friday after losing her fight to leukemia and liver disease.

Read more

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.

Read more

Forex MAJORS

Cryptocurrencies

Signatures