AUD/USD looks to extend the bounce above 0.7150 ahead of US Retail Sales

  • AUD/USD bounces as the US dollar drops with Treasury yields.
  • Gains in the S&P 500 futures also underpin the aussie dollar.
  • Dismal Chinese data could cap the gains ahead of US Retail Sales.

Fresh selling seen in the US dollar alongside the Treasury yields appears to put a fresh bid under AUD/USD, as the rates jump back above the 0.7150 barrier.

The spot consolidated below the latter almost through the Asian trades amid a cautious market mood, as disappointing Chinese activity numbers and resurgence of the coronavirus cases dampened appetite for riskier assets.

Also, the Reserve Bank of Australia’s (RBA) Governor Phillip Lowe jawboning the exchange rate level, by noting that he would like AUD lower, kept the bulls at bay.

Heading into Europe, the greenback ran through fresh offers, as the Treasury yields retreat following the overnight advance led by weak US bond auction. The renewed strength in the S&P 500 futures also seem to bode well for the higher-yielding aussie.

From a short-term technical perspective, the uptick in the aussie can be associated with a breakthrough the critical resistance at 0.7155, the convergence of the 21, 50 and 100-hourly Simple Moving Averages (HMA).

The hourly RSI has jumped back above the midline into the bullish region, suggesting more room for upside. Therefore, the price could extend the advance to test the next powerful resistance at 0.7170, where the horizontal 200-HMA and falling trendline resistance meet.

To the downside, the daily low of 0.7133 could offer immediate cushion, below which the falling trendline support at 0.7129 will be put to test.

All eyes now remain on the US Retail Sales data and US-China trade talks for fresh trading impetus.

AUD/USD: Hourly Chart


AUD/USD: Additional levels


Today last price 0.7159
Today Daily Change 0.0011
Today Daily Change % 0.15
Today daily open 0.7148
Daily SMA20 0.7139
Daily SMA50 0.7011
Daily SMA100 0.6723
Daily SMA200 0.6711
Previous Daily High 0.7189
Previous Daily Low 0.7135
Previous Weekly High 0.7244
Previous Weekly Low 0.7076
Previous Monthly High 0.7228
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.7156
Daily Fibonacci 61.8% 0.7168
Daily Pivot Point S1 0.7126
Daily Pivot Point S2 0.7103
Daily Pivot Point S3 0.7072
Daily Pivot Point R1 0.718
Daily Pivot Point R2 0.7211
Daily Pivot Point R3 0.7234



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