AUD/USD intermarket: DXY and lower commodities to weigh on Aussie?

Ross J Burland FXStreet

Currently, AUD/USD is trading at 0.7570, down -1.38% on the day, having posted a daily high at 0.7684 and low at 0.7566.

AUD/USD has lost its charm and is one of the worst performers as the greenback battles back to top position among the G10's this week. Despite the Aussies recent glory as being the best performer rising more than 6% this year and having its best month last month, the country's performance has been heavily weighted on the commodity sector, and with a bounce back in the dollar, such commodities such as iron ore and copper could come under significant pressure as could China's commodity and manufacturing industry of which Australia's export industry rely's on greatly to the tune of roughly 34% of exports.

Meanwhile, in respect to the DXY, analysts at Bank of Tokyo Mitsubish explained that the dollar needs to break 104.00 for the possibility of a breakout and a catch-up play in respect to the divergence of yields and the Fed's path and pace of tightening this year:

US dollar strength could play catch up with widening yield spreads - BTMU

These are all factors that the RBA will have to consider in the run-up to next week's meeting, but given the correction in the Aussie currently, they could be satisfied with the status quo for now and jaw bone the currency some more helping the bears along to a key target of 0.7520 and below the reverse H&S for a test of the 0.7500 level.

AUD/USD levels

Analysts at Commerzbank explained that they suspect that prices will need to go sub 0.7464, the 55-day ma, to alleviate upside pressure and trigger losses to 0.7312/00 then 0.7161/64, the recent lows. for the meantime, the 50-d sma is holding the offers up at around 0.7575 and the lows of 0.7563 today so far, but given it has given way to the pressures, on a daily closing basis the bears could extend the supply and test the neckline of the aforementioned H&S the guard a break to 0.7320 on the wide. 0.7740 is the upside target to alleviate the status quo reversal of the 2017 rally from 0.7159 late Dec lows.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.