• AUD/USD consolidates weekly losses amid quiet session, light calendar.
  • Treasury yields rebound, USD retreats even as recession fears probe optimists.
  • Aussie yields brace for the biggest fall in a decade as hawkish RBA lures bond buyers.
  • RBA’s Lowe should repeat readiness for higher rates to defend Aussie bulls.

AUD/USD dribbles around 0.6900, marking the first daily gains in three, as risk-aversion ebbs during early Friday morning in Europe. A light calendar and a lack of major negatives from macro seem to have underpinned the Aussie pair’s latest corrective pullback ahead of the scheduled speech from Reserve Bank of Australia (RBA) Governor Philip Lowe.

US 10-year Treasury yields rebound from a two-week low, flashed the previous day, as traders await more clues to confirm the economic slowdown. Even so, the bond coupons brace for the first weekly loss in four while reversing from the highest levels since 2011, at 3.09% by the press time.

At home, Australia’s 10-year Treasury bond yields extend pullback from the highest levels since 2014 despite the 1.0% daily gains around 3.71%. More importantly, the 3-year counterpart eyes the biggest weekly loss since 2011 with over 11% fall to 3.31% by the press time.

It’s worth noting that 0.50% intraday gains of the S&P 500 Futures also portray the market’s cautious optimism, or at least consolidation of the latest pessimism, during early Friday.

Amid these plays, the US Dollar Index (DXY) drops 0.15% intraday to 104.25 at the latest, which in turn allows commodities and Antipodeans to lick their wounds.

While a pause in the risk-off mood and softer USD triggered the Aussie pair’s rebound, headlines suggesting improved traffic in China add strength to the recovery moves. Even so, a cautious mood ahead of a speech from RBA’s Lowe tests the bulls.

That said, softer US PMIs and Fed Chair Jerome Powell’s readiness for more rate hikes, as well as fears over economic growth, seemed to have weighed on the AUD/USD prices the previous day. In doing so, the Aussie bears ignored upbeat S&P Global PMIs for Australia.

Moving on, AUD/USD prices are likely to remain firmer as RBA’s Lowe might not want to spoil his reputation by stepping back from the latest comments suggesting further rate hikes. Also important for the pair traders to watch is the US New Home Sales for May. Above all, updates concerning central bank moves and recession will be important to watch for clear directions.

Technical analysis

AUD/USD recovery needs validation from a downward sloping resistance line from June 07, at 0.6930 by the press time. However, sellers are likely to remain away until witnessing a downside break of the six-week-old support line, around 0.6855-60 at the latest.

Additional important levels

Today last price 0.6903
Today Daily Change 0.0003
Today Daily Change % 0.04%
Today daily open 0.69
Daily SMA20 0.7074
Daily SMA50 0.7099
Daily SMA100 0.7214
Daily SMA200 0.7234
Previous Daily High 0.6928
Previous Daily Low 0.6868
Previous Weekly High 0.707
Previous Weekly Low 0.685
Previous Monthly High 0.7267
Previous Monthly Low 0.6828
Daily Fibonacci 38.2% 0.6891
Daily Fibonacci 61.8% 0.6905
Daily Pivot Point S1 0.6869
Daily Pivot Point S2 0.6839
Daily Pivot Point S3 0.6809
Daily Pivot Point R1 0.6929
Daily Pivot Point R2 0.6959
Daily Pivot Point R3 0.6989



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

EUR/USD rebounds, steadies above 1.0400

EUR/USD rebounds, steadies above 1.0400

EUR/USD has staged a rebound and reclaimed 1.0400 during the American trading hours on Friday with the US Dollar Index retreating from the multi-week high it set at above 105.60. Nevertheless, the pair remains on track to close the week in negative territory. 


GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD reversed its direction and advanced to the 1.2050 area after having dropped to 1.1976 earlier in the day. The pair is still down more than 1% on the day with safe-haven flows dominating the financial markets following the disappointing PMI data from the US.


Gold rebounds above $1,800 as US yields fall sharply

Gold rebounds above $1,800 as US yields fall sharply

Gold has regained its traction and recovered above $1,800 after having slumped to a multi-month low below $1,790. Following the dismal PMI data from the US, the benchmark 10-year US Treasury bond yield is down more than 6% on the day, fueling XAU/USD's rebound.

Gold News

Why traders are rushing to exit positions on Cardano’s ADA price

Why traders are rushing to exit positions on Cardano’s ADA price

Cardano (ADA) price has had its performance review as the summer kicks off. ADA bulls are returning home with not-that-good a scorecard, and the underperformance could cut short holiday funding for the cryptocurrency.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!