AUD/USD fails to hold above 0.6900 as DXY extends rally


  • US Dollar Index advances to fresh multi-week highs above 98.
  • US-China trade optimism helps the pair limit its losses.
  • Coming up: Reserve Bank of Australia's Monetary Policy Statement.

After advancing to a daily high of 0.6913 during the European trading hours, the AUD/USD pair turned south in the second half of the day and erased a large portion of its daily gains. As of writing, the pair was up 0.07% on the day at 0.6887.

Earlier in the day, reports suggesting that the United States and China have agreed to roll back tariffs at an equally gradual pace as part of the phase-one of the trade deal allowed antipodeans to gather strength against their major rivals. 

However, the upbeat market sentiment also caused a sharp upsurge in the 10-year US Treasury bond yield and helped the Greenback continue to outperform its peers. The US Dollar Index, which tracks the USD's valuation against a basket of six major currencies, rose to its highest level since October 16th at 98.21 on Wednesday to make it difficult for the pair to stretch higher.

Eyes on RBA

In the early trading hours of the Asian session on Friday, the Reserve Bank (RBA) of Australia will release its Monetary Policy Statement. Commenting on the RBA's stance, "The RBA is not complacent about AUD remaining weak. In retaining the pledge that it is “is prepared to ease monetary policy further if needed,” the RBA Board surely had the currency uppermost in mind," said Westpac analysts after the bank kept its policy rate unchanged earlier this week as expected.

Markets will also be paying close attention to the Trade Balance data from China for signs of recovery in the world's second-largest economy.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6894
Today Daily Change 0.0011
Today Daily Change % 0.16
Today daily open 0.6883
 
Trends
Daily SMA20 0.684
Daily SMA50 0.6807
Daily SMA100 0.685
Daily SMA200 0.6951
 
Levels
Previous Daily High 0.6908
Previous Daily Low 0.6868
Previous Weekly High 0.693
Previous Weekly Low 0.681
Previous Monthly High 0.693
Previous Monthly Low 0.667
Daily Fibonacci 38.2% 0.6883
Daily Fibonacci 61.8% 0.6893
Daily Pivot Point S1 0.6864
Daily Pivot Point S2 0.6846
Daily Pivot Point S3 0.6824
Daily Pivot Point R1 0.6904
Daily Pivot Point R2 0.6926
Daily Pivot Point R3 0.6944

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD jumps back above 0.6950 as risk-on mood dominates

Following a bearish opening gap, AUD/USD has recovered ground and trades above 0.6950, tracking the bounce in the S&P 500 futures. The bulls shrug off US-China tensions and the worsening coronavirus situation in the US and Australia. 

AUD/USD News

USD/JPY bears holding their positions below 107 level

Yen remains a safe haven currency of choice as trade wars and the coronavirus play havoc risk apatite. Investors pin hopes on Gilead Sciences reporting that its antiviral drug Remdesivir recorded positive results in clinical trials.

USD/JPY News

Gold: Pierces $1,800 inside short-term bullish flag

Gold prices extend recoveries from $1,798.14, defies two-day losing streak. A seven-day-old bullish technical pattern, sustained trading beyond immediate support favor the buyers. 200-HMA offers additional downside support, bulls will cheer break of $1,811.60.

Gold News

WTI: Depressed above $40 amid output cut talks

WTI defies the late-Friday recovery moves while slipping from $40.80. Saudi Arabia pushes for two million barrels a day output cut, IEA improves on oil demand forecast. Risk-tone remains mildly positive amid virus woes, US-China tension.

Oil News

S&P 500: Bank's earnings in focus, COVID-19 induced insolvency fears simmer away

The S&P 500 will be a key theme on Q2 earnings this week, traders watching the banks for guidance. Wall Street stocks remain in bullish territory, but the S&P 500 is on thin-ice while below the June highs. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures