AUD/USD jumps to 0.7000 neighbourhood, multi-day high amid weaker USD/risk-on impulse

AUD/USD gains strong positive traction on Monday and is supported by a combination of factors.
Sliding US bond yields undermine the USD and offer support to the aussie amid the risk-on impulse.
Hawkish Fed expectations could limit losses for the USD ahead of the US CPI report on Wednesday.

Haresh Menghani FXStreet

The AUD/USD pair climbs to a four-day high during the early North American session, with bulls now eyeing a move towards reclaiming the 0.7000 psychological mark.

The US dollar meets with a fresh supply on the first day of a new week and erodes a part of Friday's post-NFP strong gains, which, in turn, acts as a tailwind for the AUD/USD pair. The USD weakness could be attributed to a fresh leg down in the US Treasury bond yields. Apart from this, the risk-on impulse further seems to undermine the safe-haven greenback and benefit the risk-sensitive aussie.

That said, growing worries about a global economic downturn, along with the US-China tensions over Taiwan, could keep a lid on any optimistic move in the markets. Furthermore, speculations for a larger Fed rate hike move in September should act as a tailwind for the US bond yields and lend support to the USD. This, in turn, could cap any meaningful upside for the AUD/USD pair, at least for now.

Investors might also prefer to move on the sidelines ahead of the latest US consumer inflation figures, scheduled for release on Wednesday. Against the backdrop of the upbeat US monthly jobs report, a stronger CPI print would reaffirm hawkish Fed expectations and provide a fresh lift to the USD. The fundamental backdrop warrants caution before placing aggressive bullish bets around the AUD/USD pair.

In the meantime, the US bond yields would play a key role in influencing the USD price dynamics amid absent relevant market-moving economic releases on Monday. Apart from this, traders would take cues from the broader market risk sentiment to grab short-term opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6983
Today Daily Change	0.0082
Today Daily Change %	1.19
Today daily open	0.6901

Trends
Daily SMA20	0.6894
Daily SMA50	0.6955
Daily SMA100	0.7106
Daily SMA200	0.7161

Levels
Previous Daily High	0.6979
Previous Daily Low	0.6869
Previous Weekly High	0.7048
Previous Weekly Low	0.6869
Previous Monthly High	0.7033
Previous Monthly Low	0.668
Daily Fibonacci 38.2%	0.6911
Daily Fibonacci 61.8%	0.6937
Daily Pivot Point S1	0.6854
Daily Pivot Point S2	0.6807
Daily Pivot Point S3	0.6745
Daily Pivot Point R1	0.6963
Daily Pivot Point R2	0.7026
Daily Pivot Point R3	0.7073

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.