AUD/USD drops back below 0.7500 on mixed clues from RBA’s Ellis, China


  • 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.

Technical analysis

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

Overview
Today last price 0.7543
Today Daily Change -0.0011
Today Daily Change % -0.15%
Today daily open 0.7554
 
Trends
Daily SMA20 0.7683
Daily SMA50 0.7728
Daily SMA100 0.7722
Daily SMA200 0.7557
 
Levels
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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD advances toward 1.18 on upbeat market mood

EUR/USD has bounced off the fresh three-month low of 1.1751 and trades closer to 1.18 as the US dollar takes a breather from gains and the market mood improves. Covid concerns and speculation ahead of Thursday's ECB decision weighed on the euro earlier. 

EUR/USD News

GBP/USD shrugs off Brexit concerns and rebounds above 1.3650

GBP/USD is trading above 1.3650, benefiting from a better market mood. Earlier, the pound struggled with a fresh EU-UK clash over the Northern Irish protocol and high levels of covid cases. 

GBP/USD News

XAU/USD’s downside remains exposed towards $1790

Gold price targets levels sub-$1800 as USD remains in a win-win situation. US Senate vote on infrastructure bill eyed amid lack of relevant economic news.

Gold News

SafeMoon price nowhere near recovery despite the recent pump

SafeMoon could recover some ground with the favorable rally that is passing through the cryptocurrency market today. SafeMoon is still not breaking out of a bearish triangle play on the daily chart, and more downside seems to be in the cards.

Read more

Earnings mostly impress, bond market selloff may last, oil rises, gold slumps, Bitcoin boom

The lessons learned from the bond market should be that Wall Street needs to expect excessive volatility over the next few months as the Fed manages a taper announcement as pressure grows for them to normalize rates. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures