AUD/USD clings to 0.6875 in search of fresh clues

  • AUD/USD formed a Doji candlestick formation after the previous two days of declines.
  • Risk sentiment remained mildly positive despite noises surrounding the Middle East.
  • The return of the US traders and trade/political headlines will be the key to watch.

AUD/USD failed to stay near Monday’s drop to seven-day low while taking rounds to 0.6875 during early Tuesday morning in Asia. The pair seems to have been struggling between the mixed messages from trade/political front as well as the US-cantered optimism. Investors will keep eyes on Thursday’s Aussie jobs report for fresh impulse after the bushfires.

Geopolitical tension in Libya and Iraq couldn’t defy the market’s risk tone on Monday. The reason could be the longer-lasting impacts of Friday’s upbeat US data as well the International Monetary Fund’s (IMF) projections that risks have become less skewed towards the downside.

Also, news that US President Donald Trump’s lawyers urged the Senate to reject the impeachment charges against the Republican leaders might have played its role to keep the market’s little easy. Furthermore, the global leaders’ push for peace in Iraq and Libya, as well as People’s Bank of China’s (PBOC) no change in Loan Prime Rate (LPR), could have confronted the US dollar bulls.

Recently, news crossed wires that three rockets landed near the US military bases in Iraq but no casualties were reported. Elsewhere, the US-China phase-two deal talks are likely to take place a bit later after China’s Global Times reported that Beijing needs time to consider the impact of the trade deal.

With this, the market’s risk-tone remains mostly directionless awaiting the US traders’ return after Monday’s off.

Although no major data is up for publishing on the economic calendar, markets will keep eyes on the US traders’ reaction to recent trade/political headlines. It’s worth mentioning that this week’s key Aussie even is on Thursday when the Australian Bureau of Statics will release December month employment data. Ahead of that, the Australia and New Zealand Banking Group (ANZ) anticipate the Aussie GDP to remain downbeat while saying, “We think Australia’s trend rate of growth for the coming decade will be somewhere between 2.0% and 2.5% per year. This is lower than the estimates from the RBA and Treasury.”

Technical Analysis

While a lower low formation favors the pair’s grind towards a 16-week-old rising support line, at 0.6825, multiple bottoms surrounding 0.6850 can offer an intermediate halt to the pair’s declines. On the upside, buyers will look for entry beyond a 21-day SMA level of 0.6925.

Additional important levels

Today last price 0.6872
Today Daily Change -4 pips
Today Daily Change % -0.06%
Today daily open 0.6876
Daily SMA20 0.6929
Daily SMA50 0.687
Daily SMA100 0.6841
Daily SMA200 0.6887
Previous Daily High 0.6912
Previous Daily Low 0.6871
Previous Weekly High 0.6935
Previous Weekly Low 0.6871
Previous Monthly High 0.7033
Previous Monthly Low 0.6762
Daily Fibonacci 38.2% 0.6887
Daily Fibonacci 61.8% 0.6896
Daily Pivot Point S1 0.6861
Daily Pivot Point S2 0.6845
Daily Pivot Point S3 0.682
Daily Pivot Point R1 0.6902
Daily Pivot Point R2 0.6927
Daily Pivot Point R3 0.6943



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 battles 1.21 after mixed US data

EUR/USD is trading above 1.21, choppy after US retail sales missed estimates with a drop of 1.3% but on top of upward revisions. Increases in producer prices accelerated last month.


GBP/USD bounces off two-month lows

GBP/USD has bounced off the fresh two-month low of 1.4034 but remains depressed. The delay in Britain's reopening is outweighing upbeat UK job figures. Tension is mounting ahead of the Fed.


XAU/USD looks to $1880 after recapturing $1858

Gold price is attempting a minor recovery above $1850, although the bulls appear to lack conviction, as the US dollar continues to hover near monthly highs.

Gold News

Bitcoin continues to range higher, but altcoins suffer

Bitcoin price has experienced a 32% upswing over the past six days and might retrace to gather more steam. Ethereum price performance is lackluster as it rallied roughly 17% in the same period as BTC.

Read more

Tesla still stuck in first gear

Tesla stock recovered last week as some investor enthusiasm finally returned to the stock with the release of the new Model S Plaid at Tesla's Freemont factory.

Read more