AUD/USD extends slide to fresh daily lows near 0.7740


  • AUD/USD stays under modest bearish pressure on Wednesday.
  • US Dollar Index edges higher following Tuesday's correction.
  • Focus shifts to December CPI data from US.

After closing in the positive territory on Tuesday, the AUD/USD pair lost its traction and dropped to a fresh daily low of 0.7735 ahead of the American session on Wednesday. As of writing, the pair was down 0.35% at 0.7744.

DXY rebounds ahead of inflation report

The renewed USD strength on Wednesday is forcing AUD/USD to continue to push lower. The US Dollar Index (DXY) lost 0.4% on Tuesday after a bond auction in the US caused the yields to fall sharply in the late American session. With the market mood remaining cautious, the greenback started to recover the losses it suffered against its major rivals and the DXY was last seen gaining 0.2% at 90.27.

Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) figures for December. Analysts expect the Core CPI, which strips volatile food and energy prices, to remain unchanged at 1.6% on a yearly basis. 

During the Asian trading hours on Thursday, Trade Balance data from China will be looked upon for fresh catalysts. 

According to UOB Group analysts, AUD/USD needs to make a daily close above 0.7820 in order to stage a sustained advance toward the next resistance at 0.7860. "At this stage, the prospect for AUD to move clearly above 0.7820 is not high but it would remain intact as long as AUD does not move below 0.7680 (‘strong support’ level),” analysts added.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7739
Today Daily Change -0.0035
Today Daily Change % -0.45
Today daily open 0.7774
 
Trends
Daily SMA20 0.766
Daily SMA50 0.7479
Daily SMA100 0.7331
Daily SMA200 0.707
 
Levels
Previous Daily High 0.7778
Previous Daily Low 0.7687
Previous Weekly High 0.782
Previous Weekly Low 0.7642
Previous Monthly High 0.7743
Previous Monthly Low 0.7338
Daily Fibonacci 38.2% 0.7743
Daily Fibonacci 61.8% 0.7721
Daily Pivot Point S1 0.7715
Daily Pivot Point S2 0.7655
Daily Pivot Point S3 0.7623
Daily Pivot Point R1 0.7806
Daily Pivot Point R2 0.7838
Daily Pivot Point R3 0.7898

 

 

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