AUD/USD keeps the red below 0.6500 mark, weaker USD/risk-on offers some support

AUD/USD continues to be weighed down by the RBA’s smaller than expected 25 bps rate hike.
The prevalent USD selling bias offers some support to the major and helps limit the downside.
Retreating US bond yields and the risk-on mood is seen weighing on the safe-haven greenback.

Haresh Menghani FXStreet

The AUD/USD pair struggles to capitalize on its intraday move up to over a one-week high and meets with a fresh supply near the mid-0.6500s on Tuesday. The pair maintains its offered tone through the early North American session and is currently placed around the 0.6475 area, just a few pips above the daily low.

The Australian dollar continues to be weighed down by the fact that the Reserve Bank of Australia (RBA) delivered a dovish surprise and lifted the cash rate by 25 bps. The increase was smaller than the 50 bps already priced in the markets and disappointed investors, which, in turn, is seen as a key factor weighing on the AUD/USD pair.

The downside, however, remains cushioned, at least for the time being, amid the prevalent selling bias surrounding the US dollar. The US Treasury bond yields prolong their recent pullback from a multi-year high touched last week. This, along with the risk-on impulse, undermines the safe-haven buck and benefits the risk-sensitive aussie.

Despite the supporting factor, the AUD/USD pair, so far, has been struggling to attract any meaningful buying. This, in turn, suggests that the path of least resistance for spot prices is to the downside. Hence, some follow-through weakness back below the 0.6400 mark, towards retesting the YTD low near the 0.6365 area, remains a distinct possibility.

Next on tap is the US economic docket, featuring JOLTS Job Openings and Factory Orders data. This, along with speeches by influential FOMC members and the US bond yields, will influence the USD price dynamics and provide some impetus to the AUD/USD pair. Traders will further take cues from the broader risk sentiment to grab short-term opportunities.

Technical levels to watchc

AUD/USD

Overview
Today last price	0.6476
Today Daily Change	-0.0039
Today Daily Change %	-0.60
Today daily open	0.6515

Trends
Daily SMA20	0.6647
Daily SMA50	0.6825
Daily SMA100	0.69
Daily SMA200	0.7072

Levels
Previous Daily High	0.6522
Previous Daily Low	0.6402
Previous Weekly High	0.6538
Previous Weekly Low	0.6363
Previous Monthly High	0.6916
Previous Monthly Low	0.6363
Daily Fibonacci 38.2%	0.6476
Daily Fibonacci 61.8%	0.6448
Daily Pivot Point S1	0.6438
Daily Pivot Point S2	0.636
Daily Pivot Point S3	0.6318
Daily Pivot Point R1	0.6558
Daily Pivot Point R2	0.66
Daily Pivot Point R3	0.6677

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 holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.