AUD/USD inches closer to 0.71 as DXY extends slide


  • Australian business sentiment data beat expectations.
  • Home loans decline by more than expected.
  • US Dollar Index fails to hold above 97.

After closing the previous day at its lowest level since early January at 0.7055, the AUD/USD pair staged a modest rebound on Tuesday and erased almost all of the losses it suffered n Monday. As of writing, the pair was up 0.5% on the day at 0.7093.

Earlier today, the data from Australia showed that home loans declined by 6.1% in December to miss the market expectation for a 2% decrease. However, the National Bank of Australia's monthly report revealed that the Business Confidence and Business Conditions both improved in January to help the AUD gather strength against its rivals.

Additionally, the broad-based selling pressure surrounding the USD provided an additional boost to the pair throughout the day. Following the 8-day rally that seems to have found resistance above the 97 mark, the US Dollar Index started to retrace its gains and was last seen losing 0.18% on the day at 96.90. Later in the NA session, investors will be paying close attention to FOMC Chairman Powell and Fed members Geroge and Mester's speeches for fresh clues on the short-term monetary policy outlook.

In the early Asian session on Wednesday, Westpac will publish the Consumer Confidence Index data for February.

Technical levels to consider

The pair could face the first resistance at 0.7100 (Feb. 11 high/psychological level) ahead of 0.7130 (50-DMA) and 0.7160 (20-DMA). On the downside, supports are located at 0.7050 (daily low), 0.7000 (psychological level) and 0.6920 (Jan. 3 low).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.

EUR/USD News

GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.

GBP/USD News

USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.

USD/JPY News

Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •