AUD/USD: Kick-starts the key week with 0.7000 in the spotlight


  • AUD/USD wavers around multi-day bottom with cautious mood ahead of crucial data/events.
  • China’s official PMIs came in better than expected in October, Caixin Manufacturing PMI awaited today.
  • Virus woes, uncertainty over the US elections keep US dollar on the bull’s radar.
  • RBA, US presidential election and the month-start data flow will keep markets busy.

AUD/USD seesaws around 0.7030 at the start of Monday’s Asian trading. Although the aussie pair refrains from extending Thursday’s downward trajectory, which challenged the lowest levels since July 20, bulls aren’t interested in entries as fears of the coronavirus (COVID-19) join the sober market conditions ahead of the US presidential election. Also challenging the traders is the upcoming monetary policy meeting by the Reserve Bank of Australia (RBA) while today’s second-tier data from Australia and China can offer immediate direction.

RBA’s rate cut or a blue wave?

As the covid wave 2.0 is pushing major European countries again into the national lockdowns, the UK be the latest one, fears of economic slowdown keeps the risks heavy as vaccines are awaited. Also contributing to the US dollar’s safe-haven demand is the delay in the American COVID-19 stimulus and recently upbeat data from the world’s largest economy.

Above all, markets turn dicey as the RBA is widely anticipated to take down the benchmark interest rate to the record low of 0.10% from 0.25% currently. Not only the dovish comments from Governor Philip Lowe but downbeat minutes also favor the rate cut forecasts. Additionally, traders are yet to confirm that the Democratic Party will retake controls in the US after November 03 elections, which in turn highlight the inaction before the crucial decision.

On the positive side, China’s official NBS Manufacturing and Non-Manufacturing PMIs for October flashed better than 51.3 and 52.1 respective forecasts to 51.4 and 56.2 respective figures. Further, virus conditions in Australia have started easing and Queensland is soothing border conditions.

Against this backdrop, risk barometers like equities and the Australian dollar remain pressured whereas the USD benefits from its risk-safety allure.

Moving on, Australia’s October month Commonwealth Bank Manufacturing PMI and TD Securities Inflation will precede September month’s Building Permits to entertain the AUD/USD traders. Though, major attention could be given to China’s Caixin Manufacturing PMI for October, expected to reprint 53.0 figures, for immediate direction. It should, however, be noted that nothing will beat the risk catalysts’ impact on the pair.

Technical analysis

The pair’s inability to break below the 0.7000 round-figure during September and October teases buyers to jostle with the previous support line stretched from mid-June, currently around 0.7080. Also acting as an upward hurdle is the 100-day EMA level of 0.7062.

Additional important levels

Overview
Today last price 0.7028
Today Daily Change 0.0000
Today Daily Change % 0.00%
Today daily open 0.7028
 
Trends
Daily SMA20 0.7119
Daily SMA50 0.7186
Daily SMA100 0.7113
Daily SMA200 0.68
 
Levels
Previous Daily High 0.7072
Previous Daily Low 0.701
Previous Weekly High 0.7182
Previous Weekly Low 0.7002
Previous Monthly High 0.7244
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7034
Daily Fibonacci 61.8% 0.7049
Daily Pivot Point S1 0.7002
Daily Pivot Point S2 0.6975
Daily Pivot Point S3 0.694
Daily Pivot Point R1 0.7064
Daily Pivot Point R2 0.7099
Daily Pivot Point R3 0.7125

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD regains traction to 0.7800 on upbeat Australian trade numbers, ignores soft Retail Sales

AUD/USD picks up bids from the intraday low on strong trade data. The quote extends bounce off 0.7752 following the upbeat trade figures for January while also paying a little heed to the soft Retail Sales figure for the stated month.

AUD/USD News

GBP/USD: Drops towards 1.3900 on the way to two-week-old support line

GBP/USD teases intraday low of 1.3921, currently down 0.14% around 1.3932, during Thursday’s Asian session. In doing so, the cable stretches the pullback from a one-week-old resistance line as MACD recedes bullish bias.

GBP/USD News

Gold: Bears looking to test bull's commitments at $1,698

The gold price is no longer showing signs of an immediate advance back to test $1,760. Instead, gold failed to extend beyond $1,740 and printed a fresh low to $1,702 as the US dollar and yields came up for air.

Gold News

Dogecoin price on the brink of a 40% explosion towards $0.07

Dogecoin price has been trading sideways for the past two days and inside a downtrend since its new all-time high of $0.087 on February 7. Now, the favorite canine-cryptocurrency is ready for a new leg up.

Read more

DXY continues to gain on Wednesday, eyes 91.60

US dollar firm and approaching Feb 4th highs from a significant technical support structure. US economy moderately gathering pace according to the Fed's Beige Book.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures