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.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.