AUD/USD firms up toward 0.6800 as risk flows return

AUD/USD is jumping back beyond 0.6750 amid an upbeat mood.
Risk flows and negative Treasury yields restrict the US Dollar bulls.
The Aussie pair looks to US ISM Manufacturing PMI and Fed Minutes.

Dhwani Mehta FXStreet

AUD/USD is firming up to recapture the 0.6800 barrier, catching a fresh bid at around the 0.6720 region amid the return of risk flows in Asia this Wednesday.

Expectations of a dovish Federal Reserve (Fed) Minutes are helping lift the market mood, in turn, underpinning the higher-yielding Australian Dollar at the expense of the safe-have US Dollar. The renewed weakness in the US Treasury yields across the curve is also hurting the sentiment around the greenback. The US Dollar Index has slipped from near 104.70 levels to 104.50 in Asia so far while the benchmark 10-year US rates are down 1.50% on the day to 3.735%.

The AUD/USD pair is also drawing support from the latest comments by China’s Finance Minister Liu Kun, who endorsed plans to appropriately expand fiscal spending, as the economic recovery is still not solid.

All eyes now turn toward the US ISM Manufacturing PMI release and the Fed December meeting Minutes for fresh US Dollar trades and the impact on risk sentiment. In December, the headline ISM Manufacturing PMI is seen lower at 48.5 while the New Orders Index is expected to improve to 48.1 alongside the Employment Index at 49.1.

AUD/USD: Technical levels to consider

AUD/USD

Overview
Today last price	0.6772
Today Daily Change	0.0043
Today Daily Change %	0.64
Today daily open	0.6729

Trends
Daily SMA20	0.6746
Daily SMA50	0.6662
Daily SMA100	0.6637
Daily SMA200	0.6856

Levels
Previous Daily High	0.6834
Previous Daily Low	0.6688
Previous Weekly High	0.6821
Previous Weekly Low	0.671
Previous Monthly High	0.6893
Previous Monthly Low	0.6629
Daily Fibonacci 38.2%	0.6744
Daily Fibonacci 61.8%	0.6778
Daily Pivot Point S1	0.6666
Daily Pivot Point S2	0.6604
Daily Pivot Point S3	0.652
Daily Pivot Point R1	0.6813
Daily Pivot Point R2	0.6897
Daily Pivot Point R3	0.6959

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.

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