- AUD/USD remains on the back foot at the start of the week.
- US Dollar Index edges higher toward 92.50 on Monday.
- The cautious market mood is helping the USD find demand.
The AUD/USD pair closed the previous week in the negative territory and started to edge lower after fluctuating in a tight range during the Asian trading hours on Monday. As of writing, the pair was trading at a daily low of 0.7450, losing 0.45% on the day.
In the absence of high-tier macroeconomic data releases and fundamental developments, the cautious market mood at the start of the week is helping the greenback find demand. Reflecting the broad-based USD strength, the US Dollar Index is rising 0.27% at 92.35.
Meanwhile, the Dow Futures and the S&P Futures are down 0.5% and 0.3%, respectively, suggesting that the risk-averse market environment is likely to remain intact in the American session and allow the USD to continue to outperform its rivals.
On Tuesday, the HIS New Home Sales and the National Bank of Australia Bank's Business Confidence and Business Conditions data for June will be featured in the Australian economic docket. Later in the day, June Consumer Price Index (CPI) data from the US will be looked upon for fresh impetus.
UOB Group FX strategists think that AUD/USD could have a difficult time breaking below 0.7400 in the near term.
"While our strong resistance level at 0.7500 is still intact, downward momentum has waned considerably and the prospect for AUD to break 0.7400 has diminished," strategists noted. "In order to rejuvenate the flagging downward momentum, AUD has to move and stay below 0.7450 within these 1 to 2 days or a break of 0.7500 would not be surprising."
Additional levels to watch for
|Today last price||0.7453|
|Today Daily Change||-0.0032|
|Today Daily Change %||-0.43|
|Today daily open||0.7485|
|Previous Daily High||0.7496|
|Previous Daily Low||0.7409|
|Previous Weekly High||0.7599|
|Previous Weekly Low||0.7409|
|Previous Monthly High||0.7794|
|Previous Monthly Low||0.7477|
|Daily Fibonacci 38.2%||0.7463|
|Daily Fibonacci 61.8%||0.7442|
|Daily Pivot Point S1||0.7431|
|Daily Pivot Point S2||0.7376|
|Daily Pivot Point S3||0.7344|
|Daily Pivot Point R1||0.7518|
|Daily Pivot Point R2||0.755|
|Daily Pivot Point R3||0.7605|
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.