AUD/USD eases from tops, still well bid around 0.7130-25 region

AUD/USD finds decent support near the 0.7100 mark and stages a goodish bounce on Tuesday.
An uptick in the US equity futures undermined the safe-haven USD and remained supportive.
Dovish RBA expectations, coronavirus jitters might keep a lid on any strong gains for the pair.

Haresh Menghani FXStreet

The AUD/USD pair added to its intraday gains and refreshed daily tops, around the 0.7140 region during the early European session.

The pair once again managed to find some support near the 0.7100 round-figure mark and regained some positive traction on Tuesday amid a softer tone surrounding the US dollar. A modest uptick in the S&P 500 futures undermined the safe-haven greenback amid the US political uncertainty. This, in turn, was seen as one of the key factors that benefitted perceived riskier currencies, including the aussie.

However, growing market worries that the continuous surge in new coronavirus cases could trigger renewed lockdown measures and hinder the global economic recovery extended some support to the buck. Adding to this, the lack of progress in the US stimulus talks might further hold bulls from placing any aggressive bets and keep a lid on any runaway rally for the AUD/USD pair, at least for now.

Meanwhile, increasing bets that the RBA will cut interest rates in November might further collaborate towards capping the upside. Hence, any subsequent move up might be seen as a selling opportunity. That said, it will still be prudent to wait for a sustained break below the 0.7100 round-figure mark before positioning for any further near-term depreciating move for the AUD/USD pair.

Market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders data for some impetus. Apart from this, the broader market risk sentiment will influence the USD price dynamics and produce some meaningful opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price	0.7133
Today Daily Change	0.0010
Today Daily Change %	0.14
Today daily open	0.7123

Trends
Daily SMA20	0.7139
Daily SMA50	0.7197
Daily SMA100	0.7108
Daily SMA200	0.6796

Levels
Previous Daily High	0.7182
Previous Daily Low	0.7103
Previous Weekly High	0.7159
Previous Weekly Low	0.702
Previous Monthly High	0.7414
Previous Monthly Low	0.7004
Daily Fibonacci 38.2%	0.7133
Daily Fibonacci 61.8%	0.7151
Daily Pivot Point S1	0.709
Daily Pivot Point S2	0.7057
Daily Pivot Point S3	0.7011
Daily Pivot Point R1	0.7169
Daily Pivot Point R2	0.7215
Daily Pivot Point R3	0.7248

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.