AUD/USD holds above 0.7800 as focus shifts to Wall Street's opening bell


  • AUD/USD trades at fresh six-day highs on Tuesday.
  • US Dollar Index remains depressed near multi-month lows.
  • Wall Street's main indexes look to open modestly higher.

After registering small losses on Monday, the AUD/USD pair gained traction on Tuesday and climbed to its highest level in six days at 0.7812. As of writing, the pair was up 0.5% on the day at 0.7803.

USD struggles to find demand as market mood improves

Earlier in the day, the Reserve Bank of Australia's (RBA) Meeting Minutes showed that the RBA will not be raising interest rates until actual inflation stays sustainably in the 2-3% target band. The bank further acknowledged that disruptions to global supply chains were more persistent than initially realised and noted that this factor was adding to inflation. 

Nevertheless, the USD's market valuation remained the primary driver of AUD/USD's movements on Tuesday. The risk-positive market environment made it difficult for the greenback to find demand and the US Dollar Index (DXY) dropped to its lowest level since late February at  89.69 before recovering modestly. At the time of press, the DXY was down 0.42% at 89.82.

The data from the US showed that Housing Starts declined by 9.5% in April but this reading was largely ignored by market participants. 

In the meantime, Wall Street's main indexes look to start the day in the positive territory. In case risk flows continue to dominate the financial markets in the second half of the day, the USD could stay under pressure and allow AUD/USD to inch higher.

On Wednesday, the Westpac Consumer Confidence Index and the first-quarter Wage Price Index data will be featured in the Australian economic docket.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7797
Today Daily Change 0.0032
Today Daily Change % 0.41
Today daily open 0.7765
 
Trends
Daily SMA20 0.7764
Daily SMA50 0.7714
Daily SMA100 0.7725
Daily SMA200 0.7498
 
Levels
Previous Daily High 0.7784
Previous Daily Low 0.773
Previous Weekly High 0.7892
Previous Weekly Low 0.7688
Previous Monthly High 0.7819
Previous Monthly Low 0.7531
Daily Fibonacci 38.2% 0.775
Daily Fibonacci 61.8% 0.7763
Daily Pivot Point S1 0.7735
Daily Pivot Point S2 0.7705
Daily Pivot Point S3 0.7681
Daily Pivot Point R1 0.779
Daily Pivot Point R2 0.7814
Daily Pivot Point R3 0.7844

 

 

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 struggles around 1.19 amid Fed-fueled dollar strength

EUR/USD is under pressure around 1.19, as the dollar remains on the offensive following the Federal Reserve's hawkish decision on Wednesday. The bank is set to debate cutting down its bond buys and signaled raising rates sooner than anticipated. 

EUR/USD News

GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.

GBP/USD News

GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.

GBP/USD News

Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more

Forex MAJORS

Cryptocurrencies

Signatures