AUD/USD eases from multi-week tops, still well bid around 0.7340-35 ahead of US data


  • AUD/USD shot to the highest level since September 2 amid some renewed USD selling bias.
  • Dovish Fed expectations, COVID-19 vaccine optimism undermined the safe-haven greenback.
  • A modest pickup in the US bond yields eased the USD bearish pressure and capped the upside.

The AUD/USD pair quickly retreated around 30 pips from daily swing highs, albeit has still managed to hold with decent intraday gains around the 0.7340 region.

The pair caught aggressive bids on Tuesday and jumped to the highest level since September 2 amid the emergence of some fresh selling around the US dollar. Increasing bets for additional monetary easing by the Fed in December continued exerting some pressure on the greenback through the first half of the trading action.

Meanwhile, prospects for an early rollout of vaccine for the highly contagious disease remained supportive of the upbeat market mood. This, in turn, further undermined the greenback's safe-haven demand and benefitted the perceived riskier Australian dollar, pushing the AUD/USD pair through the 0.7335-40 supply zone.

Despite the negative factors, the greenback managed to find some support at lower levels amid a modest pickup in the US Treasury bond yields. A modest USD rebound seemed to be the only factor that prompted some profit-taking around the AUD/USD pair, though the pullback lacked any strong follow-through and seems limited.

Even from a technical perspective, Tuesday's positive move confirmed a near-term bullish breakthrough a one-week-old trading range and might have already set the stage for an extension of the upward trajectory. Hence, any meaningful corrective slide might still be seen as a buying opportunity near the 0.7300 mark.

Moving ahead, the US economic docket – featuring the releases of the Conference Board's Consumer Confidence Index and Richmond Manufacturing Index – will now be looked upon for some short-term trading impetus. The key focus, however, will be on Wednesday's release of the latest FOMC policy meeting minutes.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7339
Today Daily Change 0.0055
Today Daily Change % 0.76
Today daily open 0.7284
 
Trends
Daily SMA20 0.7215
Daily SMA50 0.7178
Daily SMA100 0.7171
Daily SMA200 0.6843
 
Levels
Previous Daily High 0.7357
Previous Daily Low 0.7264
Previous Weekly High 0.734
Previous Weekly Low 0.7254
Previous Monthly High 0.7244
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.73
Daily Fibonacci 61.8% 0.7322
Daily Pivot Point S1 0.7246
Daily Pivot Point S2 0.7209
Daily Pivot Point S3 0.7154
Daily Pivot Point R1 0.7339
Daily Pivot Point R2 0.7394
Daily Pivot Point R3 0.7431

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.

EUR/USD News

GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.

GBP/USD News

Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures