AUD/USD climbs to 0.6770 area, reverses Monday's losses


  • Business Confidence in Australia improves slightly in July. 
  • US Dollar Index struggles to hold above 97.50.
  • Attention shifts to Wednesday's key data releases from China. 

The AUD/USD pair gained traction during the Asian session on the back of upbeat data from Australia and stretched higher in the last couple of hours as the USD seems to be having a difficult time finding demand ahead of the inflation data. As of writing, the pair was up 0.25% on the day at 0.6770.

The National Australia Bank's (NAB) Business Confidence Index in July improved to 4 from 2 in June and surpassed analysts' estimate of 3. Although the NAB's Business Conditions Index edged lower to 2 in the same period, it still came in better than the market expectation of 1 to help the AUD gather strength.

Key US and China data to drive AUD/USD in near-term

On Wednesday, the Westpac Consumer Confidence Index and the Wage Price Index data from Australia will be looked upon for fresh impetus. More importantly, markets will be paying close attention to Retail Sales and Industrial Production data from China to see if the trade dispute with the US is having a negative impact on the world's second-largest economy.

On the other hand, after snapping its three-week winning streak last week, the US Dollar Index (DXY), which tracks the dollar's value against a basket of six major currencies, is staying in a consolidation phase as the poor performance of the US Treasury bond yields is not allowing the currency to stage a decisive recovery. Later in the day, the US Bureau of Labor Statistics' inflation report could trigger a sharp reaction in the DXY. Experts see the core Consumer Price Index (CPI) staying unchanged at 2.1% on a yearly basis.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6769
Today Daily Change 0.0018
Today Daily Change % 0.27
Today daily open 0.6751
 
Trends
Daily SMA20 0.6892
Daily SMA50 0.6934
Daily SMA100 0.6982
Daily SMA200 0.707
Levels
Previous Daily High 0.6796
Previous Daily Low 0.6744
Previous Weekly High 0.6822
Previous Weekly Low 0.6676
Previous Monthly High 0.7082
Previous Monthly Low 0.6832
Daily Fibonacci 38.2% 0.6764
Daily Fibonacci 61.8% 0.6776
Daily Pivot Point S1 0.6732
Daily Pivot Point S2 0.6712
Daily Pivot Point S3 0.668
Daily Pivot Point R1 0.6783
Daily Pivot Point R2 0.6815
Daily Pivot Point R3 0.6835

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD extends recovery gains to 0.6850 despite China’s coronavirus harming risk-tone

AUD/USD stays on the front-foot while taking rounds to 0.6845 amid the initial Asian session on Friday. The pair recently reacted to the preliminary readings of the Commonwealth Bank (CBA) PMI details for January.

AUD/USD News

NZD/USD nears the weekly high of 0.6625 after New Zealand’s upbeat CPI

NZD/USD pops near the weekly high of 0.6625, before stepping back to 0.6620, after New Zealand’s fourth quarter (Q4) CPI data pleased kiwi buyers during the early Friday. Trade headlines, preliminary Markit PMIs will be in focus.

NZD/USD News

FX Fear Trade Gains Traction

Currencies sold off sharply today as the coronavirus virus spreads to new countries. China may be aggressively trying to contain the virus but the respite should be brief as more cases will be reported before it all peaks. 

Read more

Gold: Steady above $1,560 amid fears of China’s coronavirus outbreak

Gold stays modestly changed from Thursday’s close while taking rounds to $1,562.5 during Friday’s Asian session. The bullion recently benefited from the market’s risk-off sentiment amid fears emanating from China and trade headlines. 

Gold News

GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.

GBP/USD News

Forex MAJORS

Cryptocurrencies

Signatures