AUD/USD looks to build on strength beyond 200-day SMA/0.6600 amid softer USD


  • AUD/USD attracts buyers for the second straight day amid subdued US Dollar price action.
  • Bets that the Fed will start cutting interest rates in June keep the USD bulls on the defensive.
  • The upbeat Chinese Trade Balance also lend support, though a softer risk tone might cap gains.

The AUD/USD pair gains positive traction for the second successive day on Thursday and climbs back closer to the 0.6600 mark during the early part of the European session. Bulls are now looking to build on the momentum beyond a technically significant 200-day Simple Moving Average (SMA) and the recent recovery from the 0.6480-0.6475 area, or a multi-week low touched on Tuesday amid subdued US Dollar (USD) demand.

The USD Index (DXY), which tracks the Greenback against a basket of currencies, languishes near its lowest level since early February amid the uncertainty over the Federal Reserve's (Fed) rate cut path. In fact, Fed Chair Jerome Powell, during his semi-annual congressional testimony on Wednesday, told lawmakers that the central bank will cut interest rates this year if there is more evidence that inflation is falling to the 2% target. Minneapolis Fed President Neel Kashkari, however, downplayed bets for a more aggressive policy easing and said that he may reduce the number of cuts in 2024, to only one in the wake of the incoming stronger macro data.

The mixed signals, meanwhile, limit the downside for the US Treasury bond yields, which, along with a generally weaker tone around the equity markets, could act as a tailwind for the safe-haven Greenback. That said, China's stronger export and import growth in the January-February period, to a larger extent, helps offset the negative factor and supports prospects for a further near-term appreciating move for the AUD/USD pair. Traders now look to Fed Chair Powell's second day of testimony, which, along with the US Weekly Initial Jobless Claims and Trade Balance data, will drive the USD, though the focus remains glued to the US NFP report on Friday.

AUD/USD

Overview
Today last price 0.6592
Today Daily Change 0.0027
Today Daily Change % 0.41
Today daily open 0.6565
 
Trends
Daily SMA20 0.6525
Daily SMA50 0.6591
Daily SMA100 0.6567
Daily SMA200 0.6562
 
Levels
Previous Daily High 0.6582
Previous Daily Low 0.6493
Previous Weekly High 0.6569
Previous Weekly Low 0.6487
Previous Monthly High 0.661
Previous Monthly Low 0.6443
Daily Fibonacci 38.2% 0.6548
Daily Fibonacci 61.8% 0.6527
Daily Pivot Point S1 0.6511
Daily Pivot Point S2 0.6458
Daily Pivot Point S3 0.6423
Daily Pivot Point R1 0.66
Daily Pivot Point R2 0.6635
Daily Pivot Point R3 0.6689

 

 

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