AUD/USD erases daily gains, settles below 0.71
- Modest USD recovery weighs on the pair.
- Commodities' performance helped AUD earlier in the day.
- Coming up: RBA meeting minutes.
The AUD/USD pair started the week on a firm footing boosted by the risk-on mood and rising commodity, namely iron ore, prices in the first half of the day. After touching its highest level of March at 0.7120, however, the pair failed to preserve its bullish momentum and erased its gains in the NA trading hours. As of writing, the pair was virtually unchanged on the day at 0.7090.
In the early trading hours of the Asian session on Tuesday, the RBA is scheduled to release the minutes of its March meeting, at which the bank decided to keep the policy rate unchanged as expected and said that trade tensions remained as a source of uncertainty. Last week, Annette Beacher, chief Asia-Pacific macro strategist at TD Securities, argued that the RBA was pointing out to a balanced outlook for the economy regardless of the pessimistic market pricing.
Ahead of the RBA's minutes, the house price index from Australia will be looked upon for fresh impetus. Analysts expect house price to decline by 2% on a quarterly basis in the fourth quarter following the third quarter's 1.5% fall.
On the other hand, the US Dollar Index pushed lower earlier in the day but didn't have a tough time recovering its losses ahead of Wednesday's FOMC meeting. A modest rebound witnessed in the 10-year T-bond yield following last Friday's sharp fall seems to be supporting the greenback. At the moment, the DXY is up 0.1% on the day at 96.60.
Key technical levels
AUD/USD
Trends:Daily SMA20: 0.7101
Daily SMA50: 0.7137
Daily SMA100: 0.7161
Daily SMA200: 0.7226
Levels:
Previous Daily High: 0.7098
Previous Daily Low: 0.7061
Previous Weekly High: 0.7099
Previous Weekly Low: 0.7026
Previous Monthly High: 0.7285
Previous Monthly Low: 0.7053
Daily Fibonacci 38.2%: 0.7084
Daily Fibonacci 61.8%: 0.7075
Daily Pivot Point S1: 0.7065
Daily Pivot Point S2: 0.7045
Daily Pivot Point S3: 0.7028
Daily Pivot Point R1: 0.7101
Daily Pivot Point R2: 0.7118
Daily Pivot Point R3: 0.7138
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
