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

AUD/USD

Overview
Today last price 0.747
Today Daily Change -0.0015
Today Daily Change % -0.20
Today daily open 0.7485
 
Trends
Daily SMA20 0.7544
Daily SMA50 0.7669
Daily SMA100 0.7694
Daily SMA200 0.758
 
Levels
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

 

 

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