AUD/USD bulls struggle under 0.7600, shrug off market optimism


  • AUD/USD pauses four-day uptrend, eases from immediate range resistance.
  • Market sentiment improves on Biden’s infrastructure deal passage, soft US data backing Fed.
  • Aussie-China tussles, Fed’s removal of pandemic restrictions on banks and covid fears probe bulls.
  • Light calendar, quarter-end can keep markets dicey, risk catalysts remain as the key.

AUD/USD struggles to add to the first weekly gain in three, easing to 0.7580 at the start of Friday’s Asian session. Even so, the Aussie pair benefits from the risk-on mood while rising for the last four days at a stretch, snapping a two-week downtrend.

The passage of US President Joe Biden’s infrastructure spending and a bit softer US data favored the market mood and the AUD/USD prices. On the contrary, chatters over Fed’s dialing back of qualitative measures introduced during the pandemic and fears of the escalating Western tussles with China, not to forget covid variant woes, test the Aussie bulls.

After haggling over months, US Senators managed to agree over the much-awaited stimulus package, backed by President Biden, ahead of a two-week holiday period. “The plan is expected to increase federal spending by nearly $600 billion but leave many of President Biden’s economic proposals, including investments in child care and much of his climate agenda, for a future bill,” said New York Times.

Also favoring to sentiment were weaker than expected prints of US Durable Goods Orders and a bit high Jobless Claims, not to forget confirmation of 6.4% US GDP. The data suggests that the world’s largest economy is hitting a plateau, easing the burden from the Fed as they battle against reflation fears and tapering talks.

Alternatively, the US Federal Reserve (Fed) recently announced that the banks pass the stress test to lift the covid-led restrictions on share buybacks after June 30. This suggests the US central bank is recalling the reliefs offered during the pandemic, an indirect way of tightening. Additionally, China’s dislike of Aussie complaints about the anti-trade behavior of Beijing joins the US warships passing through Taiwan Straits offer extra burden on the risk appetite. It’s worth noting that the Delta Plus variant of the covid has become another strain for the traders.

Amid these plays, also the month-end and quarter-end mood, equities remained upbeat and so do the US Treasury yields. However, the US dollar index seesawed between gains and losses by the end of Thursday’s North American trading session.

Moving on, a lack of major data/events in Asia, coupled with the already witnessed outcome of US infrastructure spending and the key data of the week, AUD/USD may remain sidelined and can consolidate recent gains. However, qualitative factors become crucial to watch for fresh impulse.

Technical analysis

AUD/USD sustains 200-DMA breakout, suggesting further advances toward the 0.7600 and 0.7640-45 resistances until the quote stays beyond 0.7555 levels comprising the key moving average.

Additional important levels

Overview
Today last price 0.7584
Today Daily Change 0.0010
Today Daily Change % 0.13%
Today daily open 0.7574
 
Trends
Daily SMA20 0.7674
Daily SMA50 0.7725
Daily SMA100 0.7721
Daily SMA200 0.7558
 
Levels
Previous Daily High 0.76
Previous Daily Low 0.7537
Previous Weekly High 0.7727
Previous Weekly Low 0.7477
Previous Monthly High 0.7892
Previous Monthly Low 0.7674
Daily Fibonacci 38.2% 0.7576
Daily Fibonacci 61.8% 0.7561
Daily Pivot Point S1 0.754
Daily Pivot Point S2 0.7507
Daily Pivot Point S3 0.7477
Daily Pivot Point R1 0.7603
Daily Pivot Point R2 0.7633
Daily Pivot Point R3 0.7666

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.

EUR/USD News

GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.

GBP/USD News

XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more

Forex MAJORS

Cryptocurrencies

Signatures