AUD/USD flirts with session lows, eyeing mid-0.7400s

  • AUD/USD witnessed a modest pullback from the vicinity of the 0.7500 mark on Monday.
  • COVID-19 jitters weighed on the perceived riskier aussie amid a modest USD strength.
  • Hawkish Fed expectations acted as a tailwind for the USD ahead of US CPI on Tuesday.

The AUD/USD pair traded with a mild negative bias heading into the European session and was last seen hovering near the lower boundary of its intraday range, around the 0.7465-70 region.

The pair struggled to capitalize on Friday's solid rebound from the vicinity of the 0.7400 mark, or YTD lows and failed ahead of the key 0.7500 psychological mark on the first day of a new trading week. The optimism led by the People’s Bank of China’s rate cut announcement turned out to be short-lived, instead was overshadowed by concerns about new coronavirus variants. This, in turn, acted as a headwind for the perceived riskier aussie and capped the upside for the AUD/USD pair.

The prevalent cautious mood extended some support to the safe-haven US dollar, which was further underpinned by expectations that the Fed is moving towards tightening its monetary policy sooner. In fact, the June FOMC meeting minutes released last Wednesday revealed that Fed officials agreed on the need to be ready to act if inflation or other risks materialize. Hence, the market focus will remain on the latest US consumer inflation figures, due for release on Tuesday.

Apart from this, Fed Chair Jerome Powell's semi-annual congressional testimony on Wednesday and Thursday will be looked upon for clues about the US central bank's policy outlook. This will play a key role in influencing the near-term USD price dynamics. Traders will further take cues from Thursday's release of monthly employment details from Australian to determine the next leg of a directional move for the AUD/USD pair.

In the meantime, developments surrounding the coronavirus saga will drive the broader market risk sentiment. This, along with the USD price dynamics could provide some impetus to the AUD/USD pair and allow traders to grab some short-term opportunities.

Technical levels to watch


Today last price 0.747
Today Daily Change -0.0015
Today Daily Change % -0.20
Today daily open 0.7485
Daily SMA20 0.7544
Daily SMA50 0.7669
Daily SMA100 0.7694
Daily SMA200 0.758
Previous Daily High 0.7496
Previous Daily Low 0.7409
Previous Weekly High 0.7599
Previous Weekly Low 0.7409
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7463
Daily Fibonacci 61.8% 0.7442
Daily Pivot Point S1 0.7431
Daily Pivot Point S2 0.7376
Daily Pivot Point S3 0.7344
Daily Pivot Point R1 0.7518
Daily Pivot Point R2 0.755
Daily Pivot Point R3 0.7605



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 


GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.


Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!