- AUD/USD bounces off monthly low, snaps three-day downtrend.
- Aussie PM Morrison dashes trade hopes from EU, Biden promotes UN membership.
- China’s Evergrande, Fed tapering woes weigh on sentiment despite mildly easy covid fears of late.
- RBA Minutes may reiterate virus-led economic challenges, could weigh on the prices.
AUD/USD struggles to keep recovery moves from the monthly bottom as traders brace for the Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes during Tuesday’s Asian session.
That said, the Aussie pair seesaws around 0.7260 while snapping a three-day downtrend with minimal daily gains by the press time.
The latest rebound could have taken clues from Australia’s easing virus conditions and a pause in the S&P 500 Futures after the dismal performance of the Wall Street benchmarks. Even so, fears over fears over China’s Evergrande, the US stimulus and Fed tapering add to the sour sentiment and keep the AUD/USD sellers hopeful.
Australia registered a third consecutive daily fall in the covid infections the previous day, to 1,505 per the latest official figures. Also favoring the counter-trend traders are the chatters over US debt limit extension and push for vaccinations at home.
US Treasury Secretary Janet Yellen urged for another extension to the debt limit that is up for expiry in a few days to October.
On the contrary, dashed hopes of early US stimulus and Aussie PM Scott Morrison’s comments dimming the hope of the deal with the European Union (EU) join US President Joe Biden’s push for partnership with the United Nations (UN) to solve the key problems weigh on the market sentiment.
Above all, fears that China’s Evergrande isn’t only a curse to linked markets but will also roil the global financial world and the ripple effect will be larger amid the coronavirus-led economic woes exert downside pressure on the AUD/USD prices. Further, the US NAHB Housing Market Index ended four months of declines in September, rising 1 point to 76. The same join the mixed bag of the US statistics to amplify uncertainties over the Federal Reserve’s (Fed) next move as policymakers were hawkish during their latest approach.
Given the recently mixed sentiment challenging the AUD/USD bears, the pair traders will wait for the clear direction from RBA Minutes, while also keeping eyes on the macro. Although the RBA policymakers are likely to reiterate their cautious optimism after extending the bond purchase program with tapering, challenges to monetary policy tightening stay intact, which if uttered may weigh on the quote.
A convergence of 20-DMA and 50-DMA, around 0.7335-40, challenges the corrective pullback from one-month-old horizontal support near 0.7220.
Additional important levels
|Today last price||0.7254|
|Today Daily Change||-0.0030|
|Today Daily Change %||-0.41%|
|Today daily open||0.7284|
|Previous Daily High||0.7323|
|Previous Daily Low||0.7262|
|Previous Weekly High||0.7377|
|Previous Weekly Low||0.7262|
|Previous Monthly High||0.7427|
|Previous Monthly Low||0.7106|
|Daily Fibonacci 38.2%||0.7285|
|Daily Fibonacci 61.8%||0.73|
|Daily Pivot Point S1||0.7256|
|Daily Pivot Point S2||0.7228|
|Daily Pivot Point S3||0.7194|
|Daily Pivot Point R1||0.7317|
|Daily Pivot Point R2||0.7351|
|Daily Pivot Point R3||0.7379|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.