• AUD/USD loses steam as the US dollar tries to recover ground.  
  • Risk-on market mood cushions the downside in aussie.
  • Eyes on US data, RBA decision and Sino-Australian updates.

The AUD/USD pair holds the lower ground near mid-0.7350s, extending the corrective decline in early European trading.

The spot witnessed good two-way businesses so far this Monday, initially extending last week’s bullish momentum to clinch fresh multi-month highs at 0.7382 amid broad-based US weakness.

Last week’s dovish narrative thrown in by the US Federal Reserve (Fed) Chair Jerome Powell continued to weigh negatively on the greenback. Powell’s new monetary policy framework fuelled expectations of a prolonged period of low-interest rates.

Dovish Fed expectations and coronavirus vaccine hopes boosted the Asian stocks while stronger-than-expected official Chinese Manufacturing and Services PMIs also added to the optimism, underpinning the higher-yielding aussie.

The gains in the major, however, were short-lived, as the sellers returned amid a profit-taking spree after the price surged to the highest since December 2018. Also, a minor bounce seen in the US dollar against its main peers collaborated with the retracement.

Investors also weighed in the tensions between Australian and its biggest trading partner, China, after Beijing launched an anti-subsidy investigation on some wine imports from Australia.

Looking ahead, markets await the US macro releases and the Reserve Bank of Australia (RBA) policy decision for the next direction in the prices.

AUD/USD Technical levels

The bears now look to test the 5-DMA at 0.7315, below which the 0.7300 level could be tested. To the upside, a clearance of the 0.7382 hurdle, the confluence of 20-month high and daily R2 will pave the way towards 0.7400.  

AUD/USD Additional levels

AUD/USD

Overview
Today last price 0.7347
Today Daily Change -0.0018
Today Daily Change % -0.24
Today daily open 0.7366
 
Trends
Daily SMA20 0.7192
Daily SMA50 0.7078
Daily SMA100 0.6839
Daily SMA200 0.6733
 
Levels
Previous Daily High 0.7369
Previous Daily Low 0.7254
Previous Weekly High 0.7369
Previous Weekly Low 0.715
Previous Monthly High 0.7228
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.7325
Daily Fibonacci 61.8% 0.7298
Daily Pivot Point S1 0.7291
Daily Pivot Point S2 0.7215
Daily Pivot Point S3 0.7176
Daily Pivot Point R1 0.7405
Daily Pivot Point R2 0.7444
Daily Pivot Point R3 0.752

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bears flirt with 0.6900 amid recession woes, Aussie Retail Sales, Fed’s Powell eyed

AUD/USD bears flirt with 0.6900 amid recession woes, Aussie Retail Sales, Fed’s Powell eyed

AUD/USD remains depressed around 0.6900, after a two-day downtrend, as traders await key Aussie data during Wednesday’s Asian session. That said, the risk barometer pair refreshed its weekly high before closing in the red for the second consecutive day on Tuesday.

AUD/USD News

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD is trading around 1.0520 in early Asia following a choppy Tuesday on the back of a firmer US dollar, China relaxing its rigid COVID protocols coupled with disappointing US consumer sentiment data and central bank rhetoric. 

EUR/USD News

Gold eyes further downside towards $1,800, Fed Chair Powell in focus

Gold eyes further downside towards $1,800, Fed Chair Powell in focus

Gold Price remains on the back foot around $1,820, despite the recent bounce off intraday low. In doing so, the yellow metal prints a three-day downtrend as traders await the week’s key data/events amid a sluggish Asian session on Wednesday.

Gold News

Compound price: You won't believe how high COMP can rally

Compound price: You won't believe how high COMP can rally

Compound's COMP price could be a very favorable digital asset in the coming weeks. This article is meant to inform investors of data excluded on Tradingview's Binance, Coinbase and Kucoin exchanges for reasons that have yet to be explained. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures