- AUD/USD consolidates its recent recovery from multi-month lows.
- Dovish sounding remarks by RBA’s Lowe held bulls on the defensive.
- Sliding US bond yields capped the USD upside and helped limit losses.
The AUD/USD pair lacked any firm directional bias on Wednesday and remained confined in a narrow trading band, just below mid-0.6700s.
The pair struggled to capitalize on its two-day-old recovery move from multi-month lows seesawed between tepid gains/minor losses through the Asian session on Wednesday.
Traders preferred to stay on the sidelines
Comments by the RBA Governor Philip Lowe reinforced prospects for a further monetary policy easing and turned out to be one of the key factors that kept a lid on the upside.
Lowe, however, downplayed the fears of a prolonged slowdown due to the outbreak of coronavirus and added that recent inflation, jobs data are gradually moving in the right direction.
This coupled with a mildly positive tone surrounding the US dollar, underpinned by upbeat US economic data published earlier this week, further collaborated towards capping gains.
The USD bulls, however, lacked any strong conviction amid a pullback in the US Treasury bond yields, which seemed to be the only factor lending some support to the major, at least for now.
Moving ahead, market participants now look forward to the US economic docket – highlighting the release of ADP report and ISM Non-Manufacturing PMI – for some short-term trading impetus.
Technical levels to watch
|Today last price||0.6737|
|Today Daily Change||-0.0001|
|Today Daily Change %||-0.01|
|Today daily open||0.6738|
|Previous Daily High||0.674|
|Previous Daily Low||0.6678|
|Previous Weekly High||0.6829|
|Previous Weekly Low||0.6682|
|Previous Monthly High||0.704|
|Previous Monthly Low||0.6682|
|Daily Fibonacci 38.2%||0.6716|
|Daily Fibonacci 61.8%||0.6702|
|Daily Pivot Point S1||0.6697|
|Daily Pivot Point S2||0.6657|
|Daily Pivot Point S3||0.6635|
|Daily Pivot Point R1||0.6759|
|Daily Pivot Point R2||0.6781|
|Daily Pivot Point R3||0.6821|
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.