• AUD/USD off the highs despite risk rebound, strong Aussie jobs.
  • DXY rebounds as yields pause the pullback, PBOC eases policy further
  • Surging covid cases in Australia and Fed-RBA divergence to cap the upside.

AUD/USD is retreating towards 0.7250, having hit a fresh four-day high of 0.7276 in the last hours.

Resurgent US dollar demand across the board is hurting the commitment of the buyers, as the Treasury yields pause their corrective pullback from two-year highs. The US dollar index rises to 95.60, as of writing, up 0.09% on the day.

The aussie spiked to multi-day highs, earlier on, after the US stocks rebounded and fuelled risk recovery across markets, boosting the high-beta currency AUD.

Strong Australian labor market report for December combined with the Chinese central bank’s (PBOC) cuts to the mortgage lending rates add to the bullish sentiment around the aussie pair.

The Australian Unemployment Rate dropped to a 13-year low of 4.25 in the reported period, fanning speculation that the Reserve Bank of Australia (RBA) could end its bond-buying program and bring forward cash rate hikes.

The further upside for AUD/USD could remain elusive amid divergent monetary policy outlooks between the Fed and RBA. Meanwhile, the continuous rise in COVID-19 infection in the most populous state of Australia, New South Wales (NSW), also remains a concerning factor for aussie bulls.

Traders also weigh in the growing risks surrounding the Russia-Ukraine crisis and US President Joe Biden's comments on the US-China trade tariffs.

AUD/USD: Additional levels to consider

AUD/USD

Overview
Today last price 0.7259
Today Daily Change 0.0041
Today Daily Change % 0.57
Today daily open 0.7217
 
Trends
Daily SMA20 0.7225
Daily SMA50 0.7196
Daily SMA100 0.7283
Daily SMA200 0.7418
 
Levels
Previous Daily High 0.7239
Previous Daily Low 0.7176
Previous Weekly High 0.7315
Previous Weekly Low 0.7148
Previous Monthly High 0.7278
Previous Monthly Low 0.6993
Daily Fibonacci 38.2% 0.7215
Daily Fibonacci 61.8% 0.72
Daily Pivot Point S1 0.7182
Daily Pivot Point S2 0.7147
Daily Pivot Point S3 0.7119
Daily Pivot Point R1 0.7246
Daily Pivot Point R2 0.7274
Daily Pivot Point R3 0.7309

 

 

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