AUD/USD eases from multi-week tops, still comfortable above mid-0.6800s


  • Dismal Aussie data-led early downtick turns out to be short-lived.
  • US-China trade optimism continues to underpin China-proxy Aussie.
  • The USD remains supported by rising US bond yields and capped gains.

The AUD/USD pair quickly reversed an early Asian session dip and spiked to fresh six-week tops, around the 0.6885 region in the last hour, albeit quickly retreated few pips thereafter.
 
The pair initially ticked lower following the release of weaker Aussie data, showing that the Westpac Consumer Sentiment Index fell 1.7% to 98.2 in September from the previous month's reading of 100. The downtick, however, turned out to be short-lived and the pair once again managed to find decent support near mid-0.6800s.

Trade optimism attracts some dip-buying

The China-proxy Australian Dollar got a strong boost after China’s State Administration of Foreign Exchange announced to scrap quota restrictions and allow unfettered access to the stock markets to the dollar-dominated qualified foreign institutional investor, a move seen as a way to offset the effects of recent US tariffs.
 
Meanwhile, the prevalent risk-on mood allowed the US Treasury bond yields to extend their recent strong up-move, which continued lending some support to the US Dollar and turned out to be one of the key factors that kept a lid on any strong follow-through up-move for the major, at least for the time being.
 
It will now be interesting to see if the pair is able to capitalize on the positive momentum as investors look forward to the US economic docket - featuring the releases of August Producer Price Index (PPI) and wholesale inventories - for some short-term trading opportunities later during the early North-American session.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6868
Today Daily Change 0.0008
Today Daily Change % 0.12
Today daily open 0.686
 
Trends
Daily SMA20 0.6776
Daily SMA50 0.6862
Daily SMA100 0.6909
Daily SMA200 0.7019
Levels
Previous Daily High 0.6871
Previous Daily Low 0.6848
Previous Weekly High 0.6862
Previous Weekly Low 0.6687
Previous Monthly High 0.6869
Previous Monthly Low 0.6676
Daily Fibonacci 38.2% 0.6857
Daily Fibonacci 61.8% 0.6862
Daily Pivot Point S1 0.6848
Daily Pivot Point S2 0.6837
Daily Pivot Point S3 0.6825
Daily Pivot Point R1 0.6871
Daily Pivot Point R2 0.6883
Daily Pivot Point R3 0.6894

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

Euro entering the Asian session above the 1.1075 level

The Fiber, on the daily chart, is trading in a downtrend below downward sloping 100 and 200 DMAs. The market is trading above the 1.1075 level and the main SMAs. As the bullish pressure remains present above 1.1075.

EUR/USD News

GBP/USD seesaws around 1.2925 as Johnson-Corbyn debate ends on a sour note

With the ITV’s political debate deviating from the recent polls of Conservatives’ lead in Dec election, GBP/USD takes the rounds 1.2925 by the start of Asian session. Snap polls showed mixed outcome and increased political uncertainty.

GBP/USD News

USD/JPY: extra rangebound not ruled out

USD/JPY is extending the consolidative theme below 109.00. The 200-day SMA near 109.00 remains the next target. Price action keeps looking to US-China trade headlines.

USD/JPY News

Gold advances beyond $1,470 as US T-bond yields extend slide

The XAU/USD pair capitalized on the sour market sentiment in the second half of the day on Tuesday and rose above the $1,470 handle.

Gold News

FOMC Minutes October 29-30 Preview: Reinforcing the rate pause

The completion of the Federal Reserve’s “insurance policy”, so named by Chairman Powell, has bought the base rate to 1.50%-1.75% where it was a little more than a year ago on the first of May 2018.

Read more

Forex MAJORS

Cryptocurrencies

Signatures