AUD/USD eases from daily high after stronger US PCE Price Index, holds above 0.6500


  • AUD/USD trims a part of its intraday recovery gains from a fresh YTD low touched on Friday.
  • The USD bounces off the daily low in reaction to the stronger US PCE data and caps the pair.
  • The fundamental backdrop favours bearish traders and supports prospects for further losses.

The AUD/USD pair stages a goodish rebound from sub-0.6500 levels, or the lowest level since November 2022 and maintains its bid tone through the early North American session on Friday. Spot prices, however, remain below mid-0.6500s and retreat a few pips from the daily peak following the release of the US macro data.

The US Dollar (USD) trims a part of its intraday losses in reaction to the stronger Personal Consumption Expenditure (PCE) Price Index data and acts as a headwind for the AUD/USD pair.  The US Bureau of Economic Analysis (BEA) reported that the headline PCE Price Index rose 0.4% in April as compared to 0.1% in the previous month and the yearly rate accelerated to 4.4% against expectations for a fall to 3.9% from 4.2% in March. Furthermore, the Core PCE Price Index - the Fed's preferred inflation gauge - also came in higher than consensus estimates and reaffirms speculations that the Federal Reserve (Fed) will keep interest rates higher for longer, which, in turn, lends some support to the Greenback.

Hawkish Fed expectations, meanwhile, trigger a fresh leg up in the US Treasury bond yields, which, along with the caution mood, further benefits the safe-haven buck and contributes to capping the risk-sensitive Aussie. This, to a larger extent, helps offset the disappointing release of US Durable Goods Orders data, which fell by 0.6% in April vs. a modest 0.1% rise estimated and the 3.2% (revised down from 3.5%) strong growth recorded in the previous month. With the USD bulls looking to seize back control, speculations that the Reserve Bank of Australia (RBA) might refrain from hiking interest rates in June suggest that the path of least resistance for the AUD/USD pair is to the downside.

Bearish traders, however, might prefer to wait for a sustained break and acceptance below the 0.6500 psychological mark before placing fresh bets. Nevertheless, spot prices remain on track to register heavy weekly losses and record the lowest weekly close since October 2022.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6524
Today Daily Change 0.0019
Today Daily Change % 0.29
Today daily open 0.6505
 
Trends
Daily SMA20 0.6665
Daily SMA50 0.6681
Daily SMA100 0.6778
Daily SMA200 0.6706
 
Levels
Previous Daily High 0.6547
Previous Daily Low 0.6498
Previous Weekly High 0.671
Previous Weekly Low 0.6605
Previous Monthly High 0.6806
Previous Monthly Low 0.6574
Daily Fibonacci 38.2% 0.6517
Daily Fibonacci 61.8% 0.6529
Daily Pivot Point S1 0.6487
Daily Pivot Point S2 0.6468
Daily Pivot Point S3 0.6438
Daily Pivot Point R1 0.6535
Daily Pivot Point R2 0.6566
Daily Pivot Point R3 0.6584

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures