AUD/USD climbs above 0.7770, looks to post modest weekly losses

AUD/USD remains on track to finish the day in the positive territory.
US Dollar Index stays deep in the red below 90.50.
AUD/USD looks to register losses for the week.

Eren Sengezer FXStreet

The AUD/USD pair preserved its bullish momentum during the American trading hours and touched a daily high of 0.7782. As of writing, the pair was up 0.6% on a daily basis at 0.7775. Despite Friday's upsurge, AUD/USD remains on track to end the week in the negative territory.

USD selloff remains intact

The USD's market valuation continues to drive AUD/USD's action ahead of the weekend. Despite the weak macroeconomic data releases from the US, Wall Street's main indexes opened decisively higher and made it difficult for the greenback to find demand. At the moment, the US Dollar Index is losing 0.42% on the day at 90.33 and the S&P 500 Index is rising 1.25%.

The US Census Bureau reported on Friday that Retail Sales in April stayed unchanged at $619.9 billion. Additionally, Industrial Production expanded by 0.7%, falling short of the market expectation of 1%. Finally, the University of Michigan's Consumer Sentiment Index declined to 82.8 in May from 88.3, compared to analysts' estimate of 90.4.

In the meantime, the benchmark 10-year US Treasury bond yield is losing more than 1%, putting additional weight on the rate-sensitive USD's shoulders.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7776
Today Daily Change	0.0047
Today Daily Change %	0.61
Today daily open	0.7729

Trends
Daily SMA20	0.7761
Daily SMA50	0.771
Daily SMA100	0.7721
Daily SMA200	0.7492

Levels
Previous Daily High	0.7769
Previous Daily Low	0.7688
Previous Weekly High	0.7863
Previous Weekly Low	0.7674
Previous Monthly High	0.7819
Previous Monthly Low	0.7531
Daily Fibonacci 38.2%	0.7738
Daily Fibonacci 61.8%	0.7719
Daily Pivot Point S1	0.7688
Daily Pivot Point S2	0.7647
Daily Pivot Point S3	0.7607
Daily Pivot Point R1	0.7769
Daily Pivot Point R2	0.781
Daily Pivot Point R3	0.785

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold rangebound as easing October Fed bets clash with firm December hike pricing

Gold attracts some buyers at the start of a new week, though it lacks bullish conviction and remains below the $4,200 mark. US Federal Reserve Chair Kevin Warsh’s unwillingness to provide any cues on further policy moves led to a reduction in odds for policy tightening later this month. Moreover, the recent sharp retracement slide in US government bond yields from multi-year highs, which dragged the US Dollar to a two-week low, acts as a tailwind for the bullion.

Cardano risks 15% downside as retail demand, bullish momentum wane

Cardano (ADA) is trading above $0.2200 at press time on Monday, holding steady after a 12% decline the previous week. The altcoin is losing retail interest as the notional value of active ADA futures positions declines. The technical outlook for ADA suggests a downside bias following the bearish breakout below a near-term support trendline last week.

What to expect in the week ahead

Investors are still digesting last week’s price action as we start a new week. US stocks sold off sharply, with the Swiss and UK indices attracting inflows as tech sold off. Sovereign bonds, particularly Treasuries, rallied and acted as a safe haven as the AI trade suffered another bout of volatility.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.