AUD/USD fails to sustain the bounce above 0.7200

Resurgent US dollar demand, negative oil prices keep the bounce limited.
Focus on the Fedspeaks, USD dynamics and China data dump for fresh impetus.

Dhwani Mehta FXStreet

The USD bulls appear to have regained the poise in the European trading, breaking the AUD/USD pair lower from its consolidative phase, following the Asian bounce back above the 0.72 handle.

The Aussie jumped nearly 40-pips and hit daily tops near 0.7220 levels in Asia after the risk sentiment got a lift from the renewed optimism over the US-China trade talks, as the Chinese Vice-Premier Liu He was said to visit the US to discuss on the trade issue ahead of the meeting between the US President Trump and his Chinese counterpart Xi scheduled later this month.

However, the bulls failed to resist above the 0.72 handle, courtesy bearish technical set up and downbeat Australian NAB confidence and condition readings released earlier today. More so, a fresh buying interest seen around the US dollar across its main competitors combined with falling oil prices also dragged the spot lower, as markets await the Fedspeaks and the sentiment on the Wall Street for further momentum.

Also, in focus remains Wednesday’s Australian wage price index data and Chinese economic releases for any sustained recovery momentum in the major.

AUD/USD Technical Levels

Overview:
    Last Price: 0.7194
    Daily change: 12 pips
    Daily change: 0.167%
    Daily Open: 0.7182
Trends:
    Daily SMA20: 0.7144
    Daily SMA50: 0.716
    Daily SMA100: 0.7261
    Daily SMA200: 0.7466
Levels:
    Daily High: 0.7239
    Daily Low: 0.7181
    Weekly High: 0.7304
    Weekly Low: 0.7183
    Monthly High: 0.724
    Monthly Low: 0.702
    Daily Fibonacci 38.2%: 0.7203
    Daily Fibonacci 61.8%: 0.7217
    Daily Pivot Point S1: 0.7162
    Daily Pivot Point S2: 0.7143
    Daily Pivot Point S3: 0.7104
    Daily Pivot Point R1: 0.722
    Daily Pivot Point R2: 0.7258
    Daily Pivot Point R3: 0.7278

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD corrects lower, returns to 1.1650

EUR/USD could not sustain an earlier move to fresh tops just above 1.1680 on Thursday, coming under fresh selling pressure and revisiting the mid-1.1600s in the latter part of the NA session. The pair’s correction comes in response to an acceptable bounce in the US Dollar.

GBP/USD attempts some consolidation near 1.3350

GBP/USD is alternating gains with losses near 1.3350 on Thursday. The Greenback’s attempts to recover aren't really sticking, upbeat data or not, as traders stay confident that the Fed will deliver a 25 bps rate cut at its final meeting of the year.

Gold flat lines near $4,200 ahead of US PCE inflation release

Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures Price Index report for September, which will be published later on Friday.

XRP slides amid record on-chain activity, mixed technical signals

Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.

Why the Fed may cut rates in December: Understanding the policy shift

The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.

XRP edges lower despite record on-chain activity and steady ETF inflows

Ripple is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.