AUD/USD consolidates biggest losses in seven weeks above 0.7700


  • AUD/USD struggles to extend recovery moves from weekly bottom.
  • S&P 500 Futures benefit from vaccine news, ignores geopolitical, reflation fears.
  • US data, risk catalysts can entertain amid a light calendar.

AUD/USD eases from intraday top while taking rounds to 0.7725-30, up 0.07% on a day, during early Thursday. In doing so, the Aussie pair licks the US inflation-led wounds amid mildly upbeat market sentiment.

The early Asian announcement from the US Centers for Disease Control and Prevention (CDC), approving Pfizer's use of the covid-19 vaccine in adolescents age 12 and older, seems to have offered a fresh bid to the S&P 500 Futures amid a light calendar and empty feeds. Even so, the investors remain cautious after the latest strong support to reflation fears.

Following the heavy US Consumer Price Index (CPI) print for April, 4.6% YoY versus 3.6% expected and 2.6% prior, the US Federal Reserve (Fed) officials rushed to defend their ideology of easy money. However, markets couldn’t believe them and gained additional pessimism from CNN’s news suggesting a leading Democratic economist Larry Summers warning the White House on the ‘overheating’ issue.

Elsewhere, Reuters came out with a piece of news citing the US sending an envoy to placate conditions in the Middle East after Israel killed Hamas commander.

Against this backdrop, US 10-year Treasury yields wobble around 1.68% after rising the most in two months the previous day while stocks in Australia are mildly offered.

Moving on, mixed updates concerning the coronavirus (COVID-19) may keep entertaining the AUD/USD traders, likely trimming the previous day’s losses. However, US Weekly Jobless Claims, monthly Retail Sales and Producer Price Index (PPI) will be the key to watch during the rest of the week.

Technical analysis

Although a break of 0.7820 keeps AUD/USD sellers hopeful, a convergence of 100-day SMA and an ascending support line from April 01, around 0.7720, followed by the 0.7700 threshold, become tough nuts to crack for the bears.

Additional important levels

Overview
Today last price 0.773
Today Daily Change 6 pips
Today Daily Change % 0.08%
Today daily open 0.7724
 
Trends
Daily SMA20 0.7762
Daily SMA50 0.771
Daily SMA100 0.7719
Daily SMA200 0.7489
 
Levels
Previous Daily High 0.7847
Previous Daily Low 0.7718
Previous Weekly High 0.7863
Previous Weekly Low 0.7674
Previous Monthly High 0.7819
Previous Monthly Low 0.7531
Daily Fibonacci 38.2% 0.7768
Daily Fibonacci 61.8% 0.7798
Daily Pivot Point S1 0.7679
Daily Pivot Point S2 0.7634
Daily Pivot Point S3 0.755
Daily Pivot Point R1 0.7808
Daily Pivot Point R2 0.7892
Daily Pivot Point R3 0.7937

 

 

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 struggles around 1.19 amid Fed-fueled dollar strength

EUR/USD is under pressure around 1.19, as the dollar remains on the offensive following the Federal Reserve's hawkish decision on Wednesday. The bank is set to debate cutting down its bond buys and signaled raising rates sooner than anticipated. 

EUR/USD News

GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.

GBP/USD News

GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.

GBP/USD News

Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more

Forex MAJORS

Cryptocurrencies

Signatures