AUD/USD climbs to three-day tops near 0.7370 area, lacks follow-through

  • AUD/USD attracted buying for the second consecutive day and recovered further from YTD lows.
  • The risk-on impulse undermined the safe-haven USD and benefitted the perceived riskier aussie.
  • COVID-19 jitters might hold bullish traders from placing aggressive bets and cap gains for the pair.

The AUD/USD pair edged higher during the early European session and climbed to three-day tops, around the 0.7365-70 region in the last hour.

The pair gained some positive traction for the second straight session on Thursday and is now looking to build on the previous day's solid rebound from sub-0.7300 levels – the lowest since November 2020. A further improvement in the global risk sentiment – as depicted by a generally positive tone around the equity markets – acted as a headwind for the safe-haven US dollar. This, in turn, was seen as the only factor lending some support to the perceived riskier aussie.

That said, a combination of factors might hold traders from placing any aggressive bullish bets around the AUD/USD pair and keep a lid on any further gains. Investors remain concerned about the potential economic fallout from the extended lockdowns in Australia’s two most populous states of Sydney and Victoria. The worries were further fueled by Wednesday's disappointing aussie Retail Sales figures, which recorded the biggest drop since 2021 and fell 1.8% in June.

Meanwhile, the risk-on impulse in the markets might continue to push the US Treasury bond yields higher. This should lend some support to the greenback and further collaborate towards capping the upside for the AUD/USD pair. Hence, it will be prudent to wait for some strong follow-through buying before confirming that the pair has bottomed out in the near term and positioning for any meaningful appreciating move.

Market participants now look forward to the US economic docket, featuring the second-tier releases of the usual Initial Weekly Jobless Claims and Existing Home Sales data. This, along with the US bond yields, might influence the USD price dynamics and provide a fresh impetus to the AUD/USD pair. Traders will further take cues from the broader market risk sentiment to grab some short-term opportunities around the major.

Technical levels to watch


Today last price 0.7368
Today Daily Change 0.0009
Today Daily Change % 0.12
Today daily open 0.7359
Daily SMA20 0.7472
Daily SMA50 0.7609
Daily SMA100 0.766
Daily SMA200 0.7589
Previous Daily High 0.7363
Previous Daily Low 0.7288
Previous Weekly High 0.7504
Previous Weekly Low 0.7391
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7335
Daily Fibonacci 61.8% 0.7317
Daily Pivot Point S1 0.7311
Daily Pivot Point S2 0.7262
Daily Pivot Point S3 0.7236
Daily Pivot Point R1 0.7385
Daily Pivot Point R2 0.7411
Daily Pivot Point R3 0.746



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.


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.


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