AUD/USD drops to fresh daily lows near 0.6730 as DXY climbs to multi-month highs

  • Australia's trade surplus narrowed more than expected in December.
  • US Dollar Index rose to its highest level since mid-October.
  • Coming up: RBA Governor Lowe speech and AiG's Performance of Services Index.

The AUD/USD pair posted decisive gains during the first half of the week on the back of the Reserve Bank of Australia's (RBA) optimistic tone and some upbeat macroeconomic data releases from Australia but struggled to push higher on Thursday. With the broad-based USD strength dominating the markets, the pair retraced a portion of its rally and was last down 0.12% on the day at 0.6736.

Earlier in the day, the Australian Bureau of Statistics reported that the trade surplus in December narrowed 5.2 billion AUD to cap the pair's upside. Furthermore, the National Australia Bank's Business Confidence Index in the fourth quarter stayed unchanged at -1 to miss the market expectation of 3.

In the early trading hours of the Asian session, RBA Governor Lowe will be delivering a speech and the AiG will publish its Performance of Services Index.

USD preserves strength ahead of NFP

On the other hand, the US Dollar Index on Thursday advanced to its highest level since the second week of October at 98.57 to further weigh on the pair. Dallas Fed President Kaplan said that the coronavirus outbreak was unlikely to impact the Federal Reserve's policy stance and reiterated that he was expecting the policy rate to remain unchanged throughout 2020.

Additionally, the US Bureau of Labor Statistics reported that the Nonfarm Labor Productivity in the fourth quarter improved to +1.4% from -0.2% and Unit Labor Costs rose 1.4% as expected. As of writing, the index was up 0.2% on the day at 98.45.

Nonfarm Payrolls (NFP) report on Friday will be the last significant catalyst of the week for the greenback.

Technical levels to watch for


Today last price 0.6741
Today Daily Change -0.0004
Today Daily Change % -0.06
Today daily open 0.6745
Daily SMA20 0.6817
Daily SMA50 0.6862
Daily SMA100 0.6834
Daily SMA200 0.6866
Previous Daily High 0.6775
Previous Daily Low 0.6723
Previous Weekly High 0.6829
Previous Weekly Low 0.6682
Previous Monthly High 0.704
Previous Monthly Low 0.6682
Daily Fibonacci 38.2% 0.6755
Daily Fibonacci 61.8% 0.6743
Daily Pivot Point S1 0.672
Daily Pivot Point S2 0.6696
Daily Pivot Point S3 0.6668
Daily Pivot Point R1 0.6772
Daily Pivot Point R2 0.68
Daily Pivot Point R3 0.6824



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