• AUD/USD rebounds from 23-month low as bears take a breather after the biggest daily fall since Monday.
  • US Treasury yields, stock futures print mild gains to portray market’s consolidation amid a light calendar and fewer macros.
  • Comments from Fed’s Powell, Daly also seemed to have paused the bear run of late.
  • RBA’s Bullock eyed for the pace of the next rate hike, US Michigan Consumer Sentiment data will be important too.

AUD/USD bears step back from two-year low as the quote refreshes intraday peak near 0.6875 during an inactive Asian session on Friday.

The Aussie pair’s latest rebound from the multi-month low lacked any major change in the macros. However, improvement in the key risk barometers and optimism ahead of a speech from RBA Assistant Governor (Financial System) Michele Bullock could be cited as favoring the latest run-up in the quote.

That said, the US 10-year Treasury yields also portray a corrective pullback after refreshing a two-week low the previous day, around 2.86% by the press time, whereas the S&P 500 Futures print mild gains while licking its wound near one-year low.

Comments from Fed Chair Jerome Powell and San Francisco Fed President Mary Daly could also be linked to the AUD/USD pair’s latest rebound. Fed’s Powell repeated the expectation that the Fed will raise interest rates by half a percentage point at each of its next two policy meetings. The Fed boss also pledged that if data turn the wrong way "we're prepared to do more." On the same line, Fed’s Daly mentioned, “Is it 50, is it 25, is it 75? Those are things that I’ll deliberate with my colleagues, but my own starting point is we don’t want to go so quickly or so abruptly that we surprise Americans”.

It should be noted that the broad risks concerning inflation, economic growth and China’s covid, not to forget the Ukraine-Russia crisis, remain as is, which in turn challenges the AUD/USD buyers despite the latest rebound.

Also, RBA’s Bullock need not cite the economic fears from China’s lockdowns and rallying inflation to keep the AUD/USD on the road to recovery, failing to do so can renew the multi-day bottom marked the previous day.

Following that, the preliminary readings of US Michigan Consumer Sentiment data for May, expected 64 versus 65.2 prior, will be eyed for fresh impulse.

Technical analysis

AUD/USD recovery moves remain doubtful until crossing the early month’s swing low surrounding 0.7030. That said, the 50% Fibonacci retracement (Fibo.) of March 2020 to February 2021, around 0.6760, lures the bears of late.

Additional important levels

Overview
Today last price 0.6865
Today Daily Change -0.0075
Today Daily Change % -1.08%
Today daily open 0.694
 
Trends
Daily SMA20 0.7182
Daily SMA50 0.7323
Daily SMA100 0.7255
Daily SMA200 0.7276
 
Levels
Previous Daily High 0.7054
Previous Daily Low 0.692
Previous Weekly High 0.7267
Previous Weekly Low 0.7029
Previous Monthly High 0.7662
Previous Monthly Low 0.7054
Daily Fibonacci 38.2% 0.7003
Daily Fibonacci 61.8% 0.6971
Daily Pivot Point S1 0.6889
Daily Pivot Point S2 0.6838
Daily Pivot Point S3 0.6755
Daily Pivot Point R1 0.7023
Daily Pivot Point R2 0.7106
Daily Pivot Point R3 0.7157

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures