AUD/USD drops below 0.7700 as USD capitalizes on safe-haven flows


  • AUD/USD continues to push lower in the American session.
  • Major equity indexes in the US suffer heavy losses on Tuesday.
  • Focus shifts to mid-tier data releases from Australia. 

The AUD/USD pair came under renewed bearish pressure in the early trading hours of the American session and dropped to its lowest level since April 14 at 0.7675. As of writing, the pair was trading near 0.7700, losing 0.7% on a daily basis.

USD valuation continues to impact AUD/USD's movements

In the second half of the day, the greenback continued to gather strength against its rivals supported safe-haven flows. Wall Street's main indexes opened deep in the negative territory and allowed US Dollar Index (DXY) to extend its daily rebound. At the moment, the S&P 500 Index is losing 1.1% on the day and the DXY is up 0.32% at 91.25.

The data from the US showed that the IBD/TIPP Economic Optimism Index edged lower to 54.4 in May from 56.4 in April. Additionally, Factory Orders rose by 1.1% in March, falling short of analysts' estimate for an increase of 1.3%. Nevertheless, these figures failed to trigger a meaningful market reaction.

On Wednesday, the Commonwealth Bank's Manufacturing and Services PMI reports will be looked upon for fresh impetus. Additionally, March Building Permits data will be featured in the Australian economic docket as well.

Earlier in the day, the Reserve Bank of Australia (RBA) left its policy rate and bond-buying program unchanged as expected. In its Rate Statement, "at the July meeting, the board will also consider future bond purchases following the completion of the second $100 billion of purchases," the RBA noted and made it difficult for AUD to find demand.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7702
Today Daily Change -0.0059
Today Daily Change % -0.76
Today daily open 0.7761
 
Trends
Daily SMA20 0.7715
Daily SMA50 0.7717
Daily SMA100 0.7705
Daily SMA200 0.7468
 
Levels
Previous Daily High 0.7768
Previous Daily Low 0.7706
Previous Weekly High 0.7819
Previous Weekly Low 0.7696
Previous Monthly High 0.7819
Previous Monthly Low 0.7531
Daily Fibonacci 38.2% 0.7744
Daily Fibonacci 61.8% 0.7729
Daily Pivot Point S1 0.7722
Daily Pivot Point S2 0.7682
Daily Pivot Point S3 0.7659
Daily Pivot Point R1 0.7784
Daily Pivot Point R2 0.7807
Daily Pivot Point R3 0.7847

 

 

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.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.

EUR/USD News

GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 

GBP/USD News

XAU/USD rallies back closer to multi-month tops, around $1,840 region

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. 

Gold News

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more

Forex MAJORS

Cryptocurrencies

Signatures