|

AUD/USD falls below 0.7700 for the first time in more than a week

  • AUD/USD remains on the back foot following Wednesday's slump.
  • US Dollar Index stays in the positive territory below 91.00.
  • Eyes on Initial Jobless Claims and PPI data from US.

The AUD/USD pair suffered its biggest one-day loss since late March on Wednesday and seems to be having a difficult time staging a rebound on Thursday. As of writing, the pair was trading at its lowest level since May 4 at 0.7695, losing 0.35% on a daily basis.

Focus shifts to mid-tier US data

The US Bureau of Labor Statistics monthly report revealed on Wednesday that annual inflation, as measured by the Consumer Price Index, climbed to 4.2% in April from 2.6% in March. This print surpassed the market consensus of 3.6% by a large margin and triggered a rally in the US Treasury bond yields. Consequently, the greenback started to outperform its rivals and the US Dollar Index rose 0.67%.

On Thursday, the DXY is posting small daily gains around 90.80, not allowing AUD/USD to stage a rebound. Furthermore, the risk-averse market environment, as reflected by more-than-1% declines in major European equity indexes, is helping the USD stay strong against its major rivals.

Later in the session, the US Department of Labor will release its weekly Initial Jobless Claims data. Additionally, the Producer Price Index (PPI) figures will be watched closely by market participants. A stronger-than-expected PPI print and a selloff in US stocks could provide another boost to the USD in the second half of the day.

On Friday, Consumer Inflation Expectations and HIA New Home Sales data will be featured in the Australian economic docket. 

Technical levels to watch for

AUD/USD

Overview
Today last price0.7696
Today Daily Change-0.0028
Today Daily Change %-0.36
Today daily open0.7724
 
Trends
Daily SMA200.7762
Daily SMA500.771
Daily SMA1000.7719
Daily SMA2000.7489
 
Levels
Previous Daily High0.7847
Previous Daily Low0.7718
Previous Weekly High0.7863
Previous Weekly Low0.7674
Previous Monthly High0.7819
Previous Monthly Low0.7531
Daily Fibonacci 38.2%0.7768
Daily Fibonacci 61.8%0.7798
Daily Pivot Point S10.7679
Daily Pivot Point S20.7634
Daily Pivot Point S30.755
Daily Pivot Point R10.7808
Daily Pivot Point R20.7892
Daily Pivot Point R30.7937

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

More from Eren Sengezer
Share:

Markets move fast. We move first.

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

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD climbs toward 1.1800 on broad USD weakness

EUR/USD gathers bullish momentum and advances toward 1.1800 in the second half of the day on Tuesday. The US Dollar weakens and helps the pair stretch higher after the employment report showed that Nonfarm Payrolls declined by 105,000 in October before rising by 64,000 in November.

GBP/USD climbs to fresh two-month high above 1.3400

GBP/USD gains traction in the American session and trades at its highest level since mid-October above 1.3430. The British Pound benefits from upbeat PMI data, while the US Dollar struggles to find demand following the mixed employment figures and weaker-than-forecast PMI prints, allowing the pair to march north.

Gold extends its consolidative phase around $4,300

Gold trades in positive above $4,300 after spending the first half of the day under bearish pressure. XAU/USD capitalizes on renewed USD weakness after the jobs report showed that the Unemployment Rate climbed to 4.6% in November and the PMI data revealed a loss of growth momentum in the private sector in December. 

US Retail Sales virtually unchanged at $732.6 billion in October

Retail Sales in the United States were virtually unchanged at $732.6 billion in October, the US Census Bureau reported on Tuesday. This print followed the 0.1% increase (revised from 0.3%) recorded in September and came in below the market expectation of +0.1%.

Ukraine-Russia in the spotlight once again

Since the start of the week, gold’s price has moved lower, but has yet to erase the gains made last week. In today’s report we intend to focus on the newest round of peace talks between Russia and Ukraine, whilst noting the release of the US Employment data later on day and end our report with an update in regards to the tensions brewing in Venezuela.

BNB Price Forecast: BNB slips below $855 as bearish on-chain signals and momentum indicators turn negative

BNB, formerly known as Binance Coin, continues to trade down around $855 at the time of writing on Tuesday, after a slight decline the previous day. Bearish sentiment further strengthens as BNB’s on-chain and derivatives data show rising retail activity.