AUD/USD flirts with session lows, around mid-0.7200s


  • AUD/USD struggled to capitalize on its modest intraday gains to multi-day tops.
  • A combination of factors helped revive the USD demand and exerted pressure.
  • The market focus now shifts to the RBA monetary policy decision on Tuesday.

The AUD/USD pair surrendered its modest intraday gains and was last seen hovering near daily lows, just above mid-0.7200s during the early European session.

The pair edged higher during the early part of the trading action on Monday, though the uptick lacked bullish conviction and lost steam near the 0.7280-85 region. A combination of factors helped revive the US dollar demand. This, along with a turnaround in the global risk sentiment, capped the upside for the perceived riskier aussie.

Investors seem convinced that the Fed would begin rolling back its massive pandemic-era stimulus as soon as November and raise interest rate in 2022. Apart from this, a modest pickup in the US Treasury bond yields acted as a tailwind for the USD, which further benefitted from a generally weaker tone around the equity markets.

Renewed concerns about China Evergrande Group's debt crisis tempered investors' appetite for perceived riskier assets. In the latest development, the debt-ridden developer will reportedly sell a 51% stake in the property unit for more than $5.1 billion to Hong Kong’s Hopson Development, though the news did little to soothe sentiment.

Moving ahead, there isn't any major market-moving economic data due for release from the US on Monday. Hence, the US bond yields will play a key role in influencing the USD price dynamics. Apart from this, the broader market risk sentiment might further provide some impetus to the AUD/USD pair ahead of the RBA policy decision on Tuesday.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7259
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 0.7258
 
Trends
Daily SMA20 0.7299
Daily SMA50 0.7315
Daily SMA100 0.7454
Daily SMA200 0.7589
 
Levels
Previous Daily High 0.7277
Previous Daily Low 0.7191
Previous Weekly High 0.7312
Previous Weekly Low 0.717
Previous Monthly High 0.7478
Previous Monthly Low 0.717
Daily Fibonacci 38.2% 0.7244
Daily Fibonacci 61.8% 0.7224
Daily Pivot Point S1 0.7207
Daily Pivot Point S2 0.7156
Daily Pivot Point S3 0.7121
Daily Pivot Point R1 0.7293
Daily Pivot Point R2 0.7328
Daily Pivot Point R3 0.7379

 

 

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