• The Australian dollar retreats from 0.7385 high: returns to 0.7360 area.
  • The aussie remains firm, boosted by higher commodity prices.
  • AUD/USD's rally might be capped at 0.7365 – Credit Suisse.

The Australian dollar has pulled back on Tuesday’s US session, returning to 0.7360 area after having reached fresh one-month highs at 0.7385. The pair, however, is showing strength despite the rising concerns about surging inflation pressures and has rallied about 2.5% in October so far.

Higher commodity prices are boosting AUD’s rally

The Aussie seems unaffected by the US dollar’s strength and has maintained its positive tone this week. The increasing commodity prices, with iron ore, one of Australia’s main exports surging amid higher demand from China, is driving the AUD higher across the board.

Beyond that, the relaxation of COVID-19 restrictions in Sydney, the country’s most populated city, which has gone through a four-month lockdown, has increased optimism about a post-pandemic recovery while the authorities accelerate the pace of vaccination.

AUD/USD resistance at 0.7365 might cap the upside trend – Credit Suisse

The FX analysis team at Credit Suisse, however, warns about a key resistance area at 0.7365, that could halt the current rally: “AUD/USD has broken out resistance at 0.7312/17, which suggests a short-term correction higher to the 2021 downtrend at 0.7365, which we then expect to cap the market. Thereafter, support is seen at 0.7291/87 initially, below which would confirm a turn back lower and retest of 0.7179/70 lows.” 

Technical levels to watch

AUD/USD

Overview
Today last price 0.7361
Today Daily Change 0.0009
Today Daily Change % 0.12
Today daily open 0.7352
 
Trends
Daily SMA20 0.7275
Daily SMA50 0.7306
Daily SMA100 0.7427
Daily SMA200 0.7578
 
Levels
Previous Daily High 0.7374
Previous Daily Low 0.7291
Previous Weekly High 0.7339
Previous Weekly Low 0.7226
Previous Monthly High 0.7478
Previous Monthly Low 0.717
Daily Fibonacci 38.2% 0.7342
Daily Fibonacci 61.8% 0.7323
Daily Pivot Point S1 0.7304
Daily Pivot Point S2 0.7256
Daily Pivot Point S3 0.7221
Daily Pivot Point R1 0.7387
Daily Pivot Point R2 0.7422
Daily Pivot Point R3 0.747

 

 

 

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