AUD/USD holds comfortably above 0.7600 mark, lacks follow-through


  • A softer tone surrounding the USD assisted AUD/USD to regain traction on Thursday.
  • A modest uptick in the US bond yields limited the USD downside and capped gains.
  • Wednesday’s key focus will remain on Fed Chair Jerome Powell’s scheduled speech.

The AUD/USD pair retreated around 20-25 pips from daily tops and was last seen trading with modest gains near the 0.7625-30 region.

The pair once again showed some resilience near the 0.7600 mark and managed to regain some positive traction on Thursday amid a softer tone surrounding the US dollar. However, a combination of factors kept a lid on any further gains for the AUD/USD pair, rather prompted some selling at higher levels.

As investors looked past Wednesday's FOMC meeting minutes, a modest uptick in the US Treasury bond yields extended some support to the USD. Apart from this, a cautious mood around the equity markets further collaborated towards capping the upside for the perceived riskier aussie, at least for now.

The Fed reiterated its commitment to keep interest rates low until the US economy makes a more secure recovery. Investors, however, seem convinced that a stronger US economic recovery and a possible uptick in US inflation will force the Fed to start tightening the policy earlier than anticipated.

The upbeat outlook for the US economic recovery remained well supported by the impressive pace of coronavirus vaccinations and US President Joe Biden's infrastructure spending plan. This, in turn, raised doubts that the Fed will retain ultra-low interest rates for a longer period.

Hence, the focus now shifts to Fed Chair Jerome Powell's scheduled speech later during the US session. His comments will be closely scrutinized for clues about the central bank's policy outlook, which will influence the USD and provide a fresh directional impetus to the major.

In the meantime, traders will confront the release of the US Initial Weekly Jobless Claims. This, along with the US bond yields and the broader market risk sentiment, might allow traders to grab some short-term opportunities during the early North American session.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7629
Today Daily Change 0.0016
Today Daily Change % 0.21
Today daily open 0.7613
 
Trends
Daily SMA20 0.7674
Daily SMA50 0.7716
Daily SMA100 0.7647
Daily SMA200 0.7404
 
Levels
Previous Daily High 0.7678
Previous Daily Low 0.7599
Previous Weekly High 0.7694
Previous Weekly Low 0.7531
Previous Monthly High 0.785
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7629
Daily Fibonacci 61.8% 0.7648
Daily Pivot Point S1 0.7582
Daily Pivot Point S2 0.7551
Daily Pivot Point S3 0.7503
Daily Pivot Point R1 0.7661
Daily Pivot Point R2 0.7709
Daily Pivot Point R3 0.774

 

 

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retreats below 1.2000 on US dollar bounce, German CPI in focus

EUR/USD snaps three-day uptrend while stepping back from one-month tops of 1.1990. US dollar bounce and market consolidation trigger pullback moves. Vaccine jitters, US-Russian conflict battle stimulus hopes to challenge risk-on mood. German CPI can recall the bulls.

EUR/USD News

GBP/USD slips below 1.3800 ahead of US retail sales, Brexit meet

GBP/USD maintains a cautious approach below 1.3800, accumulating minor losses. Global risk uncertainties weigh on the pair. Investors await the US Retail Sales data while eyeing Brexit meeting on the NI issue.

GBP/USD News

Bitcoin on-chain data shows BTC is reaching “peak hype”

Bitcoin’s on-chain data suggest a short-term correction may be needed before Bitcoin could continue its price rally. Market sentiment toward Bitcoin poses a major concern for the cryptocurrency, indicating it is approaching “peak hype.”

Read more

XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales

Gold is breaking higher as the US dollar rebound loses steam. The US Treasury yields retreat ahead of the Retail Sales release. XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold News

Coinbase (COIN) closes down 14% from the $381 opening price, what next?

After a dream debut for the cryptocurrency exchange Coinbase Global Inc. (COIN) on Nasdaq at $381, the shares rallied as high as $429.54. Although the upswing failed to sustain, as Bitcoin fell from record highs and tech stocks tumbled across the board. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures