• AUD/USD extends the previous day’s pullback from weekly top, stays pressured around intraday low.
  • Market sentiment dwindles amid fears of recession, lack of major catalysts challenge momentum traders.
  • Australia’s business sentiment gauge dropped for the second month, China rejects expectations of heavy stimulus.
  • RBA rate hike expectations ease ahead of Wednesday’s Aussie Retail Sales, US CB Consumer Confidence could direct intraday moves.

AUD/USD remains on the back foot for the second consecutive day, down 0.25% around 0.6920 during the mid-Asian session on Tuesday. In doing so, the Aussie pair justifies downbeat data at home, disappointment from China and receding hopes of the Reserve Bank of Australia’s (RBA) aggression ahead of the key US and Australia statistics.

Australia’s Roy Morgan Business Confidence index fell to 97.3 for June. In doing so, the sentiment gauge drops to the lowest levels since September 2020 while also posting the second monthly fall.

Moving on, China’s National Development and Reform Commission (NDRC) Vice Head mentioned that China will not resort to flood-like stimulus. The policymaker also said, “China faces new challenges in stabilizing jobs, prices due to covid, Ukraine crisis.”

Elsewhere, global rating agency S&P cuts Australia’s 2022 GDP forecast to to 3.6% (from 4% previously), 2023 projection is 2.8% (2.7% prior forecast). The rating giant also expects further interest rate hikes to 1.75% this year, 2.5% in 2023, 2.75% in 2024 while a cut to 2.5% in 2025.

On a different page, the market’s cautious mood ahead of the key data/events joins a light calendar in Asia to weigh on sentiment amid impending fears of recession. While portraying the mood, the S&P 500 Futures retreat from a two-week high flashed the previous day, down 0.15% intraday around 3,897 at the latest. In doing so, the key gauge of the US equity futures prints the first daily loss in four. On the same line, the US 10-year Treasury yields dropped 1.9 basis points (bps) to 3.17% by the press time. The benchmark US bond coupons rose during the last two consecutive days.

Looking forward, US CB Consumer Confidence for June, prior 106.4, will precede Wednesday’s ECB Forum as an important catalyst to determine short-term market moves.

At home, Australia’s Retail Sales for May, up for publishing on Wednesday, is expected to ease to 0.4% versus 0.9% previous growth. It’s worth noting that the futures market hints at the slower pace of the RBA’s rate hike of late. That said, the benchmark rates are seen at 3.25% by the end of the year, compared with almost 4.0% a couple of weeks ago.

Technical analysis

Unless successfully crossing the weekly resistance line near 0.6945, AUD/USD remains vulnerable to challenge the six-week-old support line near 0.6885.

Additional important levels

Today last price 0.6925
Today Daily Change -0.0010
Today Daily Change % -0.14%
Today daily open 0.6935
Daily SMA20 0.7051
Daily SMA50 0.7082
Daily SMA100 0.7211
Daily SMA200 0.7231
Previous Daily High 0.6959
Previous Daily Low 0.6908
Previous Weekly High 0.6997
Previous Weekly Low 0.6868
Previous Monthly High 0.7267
Previous Monthly Low 0.6828
Daily Fibonacci 38.2% 0.6927
Daily Fibonacci 61.8% 0.6939
Daily Pivot Point S1 0.6909
Daily Pivot Point S2 0.6882
Daily Pivot Point S3 0.6857
Daily Pivot Point R1 0.696
Daily Pivot Point R2 0.6985
Daily Pivot Point R3 0.7012



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 Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD loses recovery momentum after testing 1.0200

EUR/USD loses recovery momentum after testing 1.0200

EUR/USD has lost its momentum after having climbed toward 1.0200 during the European trading hours on Wednesday. As investors wait for the FOMC to release the minutes of its July meeting, the dollar consolidates its daily gains, allowing the pair to hold above 1.0150.


GBP/USD retreats to 1.2050 area ahead of FOMC Minutes

GBP/USD retreats to 1.2050 area ahead of FOMC Minutes

GBP/USD has reversed its direction after having recovered toward 1.2100 in the second half of the day on Wednesday and retreated toward 1.2050. The risk-averse market environment makes it difficult for the pair to gain traction as focus shifts to FOMC Minutes.


Gold pushes lower toward $1,760 as US yields extend rally

Gold pushes lower toward $1,760 as US yields extend rally

Gold continues to decline toward $1,760 during the American trading hours on Wednesday. Before the FOMC releases the July meeting minutes, the benchmark 10-year US Treasury bond yield is up more than 3% on the day above 2.9%, weighing heavily on XAU/USD.

Gold News

Will the FOMC minutes make or break Bitcoin’s uptrend?

Will the FOMC minutes make or break Bitcoin’s uptrend?

Ahead of the FOMC minutes release Bitcoin withdrawal from exchanges continued. Proponents expect the market to react to signs Fed members will continue with more aggressive interest rate hikes, increasing the pressure on Bitcoin price. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!