• A subdued USD price action helped build on Friday’s post-NFP rebound from 2-month lows.
• Upbeat Jan. retail sales figures offset by a downward revision of the previous month’s readings.
• A goodish pickup in the US bond yields seemed to be the only factor capping any strong gains.
The AUD/USD pair held on to its mildly positive tone through the early North-American session, with bulls looking to extend the momentum further beyond mid-0.7000s.
After a modest weekly bearish gap opening, the pair managed to regain some positive traction for the second consecutive session and attempted to build on Friday's post-NFP goodish bounce from over two-month tops amid a subdued US Dollar price action.
The greenback lost some additional ground following the release of delayed US monthly retail sales figure, which came in to show a larger than expected rebound in January but was largely offset by a further downward revision of the previous month's already awful readings.
Despite the supporting factors, the pair lacked any strong bullish conviction amid a goodish pickup in the US Treasury bond yields, which against the backdrop of growing bets for an RBA rate cut kept a lid on any meaningful up-move for the Aussie.
Hence, it would be prudent to wait for a follow-through buying before confirming that the pair might have already formed a firm base near the key 0.70 psychological mark and positioning for any further near-term appreciating move.
Technical levels to watch
Immediate resistance is pegged near the 0.7085 horizontal level, above which the pair is likely to reclaim the 0.7100 handle and aim towards testing 50-day SMA hurdle near the 0.7130-35 region. On the flip side, the 0.7025 level now seems to protect the immediate downside and is closely followed by the 0.70 handle, which if broken should open the room for an extension of the recent rejection slide from the 0.7200 round figure mark.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below .0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure to trade below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% on a monthly basis in February. Resurgent US Dollar demand is adding to the downside in the pair.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.