- AUD/USD attracted some buying on Monday and stalled its recent slide from the 0.7815-20 area.
- Dovish Fed expectations, the risk-on mood undermined the USD and extended some support.
- Investors now eye US ISM PMI, Powell’s speech for some impetus ahead of the RBA on Tuesday.
The AUD/USD pair held on to its modest gains through the first half of the European session and was last seen hovering near the top end of its intraday trading range, around the 0.7725-30 region.
Having shown some resilience below the 0.7700 mark, the pair edged higher on the first day of a new week and recovered a part of Friday's decline to one-week lows. The AUD/USD pair, for now, seems to have stalled its recent sharp pullback from the 0.7815-20 heavy supply zone and was supported by a combination of factors.
The US dollar struggled to capitalize on last week's rebound from the lowest level since February 26 amid expectations that the Fed will keep interest rates low for a longer period. This, along with the prevalent risk-on mood, further undermined the safe-haven greenback and extended some support to the perceived riskier aussie.
The uptick marked the first day of a positive move in the previous three trading session, though lacked any strong follow-through. Investors now seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the latest monetary policy update by the RBA, scheduled during the Asian session on Tuesday.
In the meantime, the US economic docket – featuring the release of the ISM Manufacturing PMI – will be looked upon for some impetus. Apart from this, a scheduled speech by Fed Chair Jerome Powell will influence the USD price dynamics and further contribute to producing some short-term trading opportunities around the AUD/USD pair.
Technical levels to watch
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.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.