- AUD/USD is consolidated within a tight Asian range of between 0.7059 and 0.7071, currently trading at 0.7068 at the time of writing.
AUD/USD has been recovering overnight as US markets opened following a day off from Christmas Day and rallied from 0.7045 to 0.7072 as stocks and risk appetite bounced back supporting the higher betas such as the Aussie.
There are no domestic events scheduled and instead, markets will remain thin into the New Year and will likely be dominated by political headlines ahead of the nonfarm payrolls data from the US at the start of January. However, the high beta sector is still probably one to be cautious off considering the various headwinds that are seen hurting stock markets and investor sentiment for the global economic picture.
Eyes stay on US government shutdown
Analysts at TD Securities explained that, historically, shutdowns have not had much of an economic or market impact. However, it reinforces the extent of dysfunction in Congress and essentially removes any chance of bipartisan fiscal stimulus such as infrastructure. It can also worsen the risk-off sentiment in the market.
AUD/USD levels
Valeria Bednarik, Chief Analyst at FXStreet explained that the 4 hours chart shows that selling interest is aligned around a firmly bearish 20 SMA that extends its slide below the larger ones, which also present bearish slopes.
"In the mentioned chart, the RSI indicator aims modestly higher around 40, while the Momentum indicator retreats just modestly within negative levels, indicating little buying interest around the pair. The pair could recover further on a break above the mentioned daily high, although chances of sustained gains above the 0.7100 level are still seen limited."
- Support levels: 0.7020 0.6990 0.6960
- Resistance levels: 0.7070 0.7100 0.7135
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.