AUD/USD drops to 2-week lows, closer to 0.6900 handle


  • AUD/USD remains depressed for the fourth consecutive session on Tuesday.
  • Improving global risk sentiment/trade optimism does little to lend any support.
  • Market participants now look forward to the US ISM PMI for a fresh impetus.

The AUD/USD pair dropped to two-week lows in the last hour, albeit managed to find some support just ahead of the 0.6900 round figure mark

The pair extended its recent sharp pullback from over five-month tops – levels beyond the key 0.70 psychological mark – and remained under some selling pressure for the fourth consecutive session on Tuesday.

Bulls ignore a combination of supporting factors

The downfall seemed rather unaffected by improving global risk sentiment, which tends to benefit perceived riskier currencies – like the aussie. The market mood calmed a bit in the absence of any fresh threats from the US or Iran.

Meanwhile, the risk-on flows helped the US Treasury bond yields to build on the overnight late rebound, which extended some support to the US dollar and turned out to be one of the key factors dragging the pair lower.

This coupled with possibilities of some short-term trading stops being triggered on a sustained break below the 0.6930 horizontal support further collaborated to the pair's intraday downfall to the lowest level since December 24.

Despite the pullback, the China-proxy Australian dollar managed to find some support ahead of the very important 200-day SMA, around the 0.6900 handle, amid growing optimism over a possible phase one US-China trade deal.

Moving ahead, market participants now look forward to the release of the US ISM Non-Manufacturing PMI in order to grab some short-term trading opportunities later during the early North-American session on Tuesday.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6917
Today Daily Change -0.0023
Today Daily Change % -0.33
Today daily open 0.694
 
Trends
Daily SMA20 0.6923
Daily SMA50 0.687
Daily SMA100 0.6829
Daily SMA200 0.6898
 
Levels
Previous Daily High 0.6959
Previous Daily Low 0.6924
Previous Weekly High 0.7043
Previous Weekly Low 0.693
Previous Monthly High 0.7033
Previous Monthly Low 0.6762
Daily Fibonacci 38.2% 0.6946
Daily Fibonacci 61.8% 0.6938
Daily Pivot Point S1 0.6924
Daily Pivot Point S2 0.6907
Daily Pivot Point S3 0.6889
Daily Pivot Point R1 0.6958
Daily Pivot Point R2 0.6976
Daily Pivot Point R3 0.6993

 

 

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