- AUD/USD fades bounce off intraday low, snaps two-day uptrend.
- RBA’s Ellis backs easy money policy with eyes on employment, inflation.
- China warns US over warships in Taiwan Strait, Canberra–Beijing tussles escalate.
- US PMIs, Fedspeak can offer extra directives but risk catalysts stay on the driver’s seat.
AUD/USD retreats to 0.7540, down 0.16% intraday, during the first daily downside on early Wednesday. The pair recently reacted to price-negative headlines from China while failing to justify the RBA policymaker’s optimism.
Reserve Bank of Australia (RBA) Assistant Governor (Economic) Luci Ellis, recently crossed wires, via Reuters, while repeating the signature tunes of RBA policymakers. In doing so, RBA’s Ellis said that the board remains committed to “maintaining highly supporting monetary conditions.” The RBA board member also mentioned, “Aim of policy settings is to support a return to full employment and inflation consistent with the target.”
On the other hand, a poll showing sour relations between Australia and China exert downside pressure on the AUD/USD prices. Also, China’s warning to the US over its warships in the Taiwan Strait, as well as Beijing’s push to control commodity prices, add to the pair’s downside momentum.
Earlier in Asia, the preliminary readings of Commonwealth Bank of Australia’s (CBA) activity numbers for June eased from prior levels even as the CBA called for rate hikes in 2022. The readings triggered the AUD/USD pair’s initial losses following a two-day uptrend, mainly led by the US Federal Reserve (Fed) policymaker’s step back on the tapering and rate hike signals flashed last week.
Amid these plays, stock futures and Treasury yields remain directionless while the US dollar rebounds amid the fresh rush to risk safety.
Considering the scheduled readings of US PMIs for June and Fedspeak left for publishing, AUD/USD may remain pressured ahead of the releases. Should the data/events turn out as requiring the Fed’s monetary policy adjustment, the risk-barometer pair can drop back towards the yearly low.
AUD/USD failed to cross 200-day SMA, around 0.7560, during the early week recovery. The following pullback takes clues from bearish MACD to direct bears toward the yearly bottom surrounding 0.7480-75.
Additional important levels
|Today last price||0.7543|
|Today Daily Change||-0.0011|
|Today Daily Change %||-0.15%|
|Today daily open||0.7554|
|Previous Daily High||0.7565|
|Previous Daily Low||0.7494|
|Previous Weekly High||0.7727|
|Previous Weekly Low||0.7477|
|Previous Monthly High||0.7892|
|Previous Monthly Low||0.7674|
|Daily Fibonacci 38.2%||0.7538|
|Daily Fibonacci 61.8%||0.7521|
|Daily Pivot Point S1||0.751|
|Daily Pivot Point S2||0.7466|
|Daily Pivot Point S3||0.7439|
|Daily Pivot Point R1||0.7582|
|Daily Pivot Point R2||0.7609|
|Daily Pivot Point R3||0.7653|
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.