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.

Anil Panchal FXStreet

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

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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