AUD/USD moves back closer to session tops, bulls await a move beyond 0.7400


  • The emergence of some selling around the USD assisted AUD/USD to recover early lost ground.
  • Disappointing US Durable Goods Orders further weighed on the USD and remained supportive.
  • COVID-19 jitters and a generally softer risk tone might cap gains for the perceived riskier aussie.

The AUD/USD pair recovered over 40 pips from the daily swing lows and climbed back closer to daily swing highs, around the 0.7375-80 region.

Having found some support near the 0.7335-30 region, the AUD/USD pair attracted some buying on Tuesday and has now moved closer to the top end of a multi-day-old trading range resistance. The US dollar struggled to capitalize on its modest intraday gains amid a sharp intraday decline in the US Treasury bond yields and extended some support to the AUD/USD pair.

The intraday USD selling picked up pace during the early North American session in reaction to disappointing US Durable Goods Orders data. In fact, the headline orders recorded a modest 0.8% growth in June as against 2.1% anticipated. Adding to this, orders excluding transportation items also fell short of market expectations and rose 0.3% during the reported month.

That said, a generally weaker tone around the equity markets might act as a tailwind for the safe-haven greenback. Worries that the spread of the highly contagious Delta variant of the coronavirus could derail the global economic recovery continued weighing on investors' sentiment. This, in turn, might cap any meaningful gains for the perceived riskier aussie.

Investors might also refrain from placing any aggressive bets ahead of this week's key event risk – the FOMC monetary policy meeting. Even from a technical perspective, the AUD/USD pair has been struggling to move back above the 0.7400 round-figure mark. This further makes it prudent to wait for some strong follow-through buying before placing fresh bullish bets.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7377
Today Daily Change -0.0007
Today Daily Change % -0.09
Today daily open 0.7384
 
Trends
Daily SMA20 0.7441
Daily SMA50 0.7586
Daily SMA100 0.765
Daily SMA200 0.7594
 
Levels
Previous Daily High 0.7391
Previous Daily Low 0.733
Previous Weekly High 0.7417
Previous Weekly Low 0.7288
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7368
Daily Fibonacci 61.8% 0.7353
Daily Pivot Point S1 0.7346
Daily Pivot Point S2 0.7308
Daily Pivot Point S3 0.7285
Daily Pivot Point R1 0.7407
Daily Pivot Point R2 0.7429
Daily Pivot Point R3 0.7468

 

 

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