AUD/USD extends daily rebound beyond 0.7060 supported by risk flows


  • AUD/USD is staging a technical correction on Monday.
  • Upbeat market mood helps AUD gather strength at the start of the week.
  • US Dollar Index drops toward 94.20 ahead of the American session.

The AUD/USD pair closed the previous six trading days in the negative territory but started to erase its losses on Monday. As of writing, the pair was up 0.58% on a daily basis at 0.7067.

Over the weekend, the data from China showed that industrial profits grew by 19.1% on a yearly basis in August and helped the China-proxy AUD start the week on a strong footing.

USD weakens as markets turn risk-positive

Meanwhile, the upbeat market mood, as reflected by rising global equity indexes, made it difficult for the safe-haven USD to preserve its strength against its rivals. After gaining more than 1.5% last week, the US Dollar Index edged lower on Monday and was last seen losing 0.4% on a daily basis at 94.20.

In the second half of the day, the Federal Reserve Bank of Dallas' Manufacturing Business Index will be the only macroeconomic data release from the US.

Meanwhile, the S&P 500 futures are up more than 1% on Monday, suggesting that Wall Street's main indexes are likely to open decisively higher. A stock market rally in the US could put additional weight on the greenback's shoulders during the American session and help AUD/USD edge higher.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7062
Today Daily Change 0.0032
Today Daily Change % 0.46
Today daily open 0.703
 
Trends
Daily SMA20 0.725
Daily SMA50 0.7203
Daily SMA100 0.7007
Daily SMA200 0.6774
 
Levels
Previous Daily High 0.7087
Previous Daily Low 0.7004
Previous Weekly High 0.7325
Previous Weekly Low 0.7004
Previous Monthly High 0.7416
Previous Monthly Low 0.7076
Daily Fibonacci 38.2% 0.7036
Daily Fibonacci 61.8% 0.7055
Daily Pivot Point S1 0.6994
Daily Pivot Point S2 0.6958
Daily Pivot Point S3 0.6912
Daily Pivot Point R1 0.7077
Daily Pivot Point R2 0.7123
Daily Pivot Point R3 0.7159

 

 

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