- AUD/USD bulls catch a breather after stellar recovery from yearly low.
- US dollar decline, pressured by US Treasury yield fall, propelled the quote.
- Brisbane lockdown called back early as community transmission slump, US President Biden’s plan gets criticism.
- US ISM Manufacturing PMI contrasts surprisingly downbeat China’s Caixin PMI, US NFP eyed on a likely dull day.
AUD/USD attacks the upper end of the immediate 10-pip trading range, around 0.7610-20, as traders gear up for the Good Friday holiday. After refreshing the yearly low with 0.7531 figures during early Thursday, the aussie pair recovered heavily towards regaining the 0.7600 area amid broad US dollar weakness and a likely positioning ahead of a long weekend.
Treasury yields keep the driver’s seat…
Despite strong US ISM Manufacturing PMI, 64.7 versus 61.3 expected, not to forget growing fears of rejection to the US President Joe Biden’s $2.25 trillion infrastructure spending plan by Republicans in the Senate, AUD/USD could rise on Thursday. Behind the moves were the 6.7 basis points (bps) of drop, the heaviest in five weeks, by the US 10-year Treasury yield.
The US dollar index (DXY) also marked the biggest losses since March 17 while following the yields and paying a little heed to the catalysts at home.
Other than the strong US ISM Manufacturing PMI, versus the downbeat China Caixin Manufacturing PMI, China’s tussle with the West and US Republicans’ readiness to probe President’s infrastructure spending in the Senate could have also weighed on the AUD/USD but failed. Additionally, fresh lockdowns in France and Canada’s Ontario are likely an extra burden on the risk catalysts that might test the bulls.
On the contrary, only one community transmission in Brisbane allowed the government to call back the lockdown while staying strict for masks. Also on the risk-positive side was news that Pfizer’s covid cure is 100% effective on adolescents.
Amid these plays, Wall Street benchmarks cheered another stimulus, as well as hints for a few more, while positing over 1.0% gains each. Among them, S&P 500 refreshed the record top by crossing the 4,000 mark.
Looking forward, equity and bond markets close in Australia, New Zealand, Singapore and Hong Kong may negatively affect the AUD/USD moves. However, China and Japan are open, which in turn can offer mild liquidity ahead of US employment figures for March. It should be noted that bourses in Europe and the UK will also be closed for Good Friday, suggesting no major reaction to the otherwise key data. Hence, AUD/USD recovery is likely to be tested but beware of wild moves during the thin market liquidity.
Despite faking the breakdown of 0.7562-57 key support zone, comprising lows marked since December 28, 2020, AUD/USD is yet to overcome 0.7630-35 resistance confluence comprising 100-day SMA and a two-week-old falling trend line. Hence, bears can stay hopeful but fresh selling should wait for a clear break below 0.7557.
Additional important levels
|Today last price||0.7616|
|Today Daily Change||18 pips|
|Today Daily Change %||0.24%|
|Today daily open||0.7598|
|Previous Daily High||0.7637|
|Previous Daily Low||0.7588|
|Previous Weekly High||0.7758|
|Previous Weekly Low||0.7562|
|Previous Monthly High||0.785|
|Previous Monthly Low||0.7562|
|Daily Fibonacci 38.2%||0.7618|
|Daily Fibonacci 61.8%||0.7606|
|Daily Pivot Point S1||0.7578|
|Daily Pivot Point S2||0.7558|
|Daily Pivot Point S3||0.7529|
|Daily Pivot Point R1||0.7628|
|Daily Pivot Point R2||0.7657|
|Daily Pivot Point R3||0.7677|
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.