AUD/USD off lows, still in the red below mid-0.6700s


  • Fresh tensions between the US and China weighed on the China-proxy Aussie.
  • Sliding US bond yields undermined the USD and helped limit the downside.
  • Investors now look forward to the US retail sales data for a fresh impetus.

The AUD/USD pair held on to its weaker tone through the early European session on Wednesday, albeit found some support near the 0.6725 region and recovered few pips from daily lows.
 
The pair extended its recent pullback from levels just above the 0.6800 round-figure mark, touched last week, and remained under some heavy selling pressure for the third consecutive session on Wednesday amid fresh trade uncertainty.

Trade uncertainties continues to exert pressure

Fresh signs of strains on relations between the world's two largest economies reemerged after China criticized the new US legislation as supportive of pro-democracy protests in Hong Kong and dented investors’ appetite for riskier assets.
 
The latest development further dampened prospects for an immediate resolution of the prolonged US-China and turned out to be one of the key factors exerting some fresh downward pressure on the China-proxy Australian Dollar.
 
Meanwhile, the ongoing fall in the US Treasury bond yields kept the US Dollar bulls on the defensive and helped limit any deeper losses, rather assisted the pair to recover around 20 pips from daily lows, back closer to mid-0.6700s.
 
It, however, remains to be seen if the pair is able to capitalize on the recovery move or remains depressed as market participants now look forward to Wednesday's important release of the US monthly retail sales data for a fresh impetus.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6743
Today Daily Change -0.0009
Today Daily Change % -0.13
Today daily open 0.6752
 
Trends
Daily SMA20 0.6758
Daily SMA50 0.6778
Daily SMA100 0.6863
Daily SMA200 0.6976
 
Levels
Previous Daily High 0.679
Previous Daily Low 0.6742
Previous Weekly High 0.6811
Previous Weekly Low 0.6704
Previous Monthly High 0.6895
Previous Monthly Low 0.6687
Daily Fibonacci 38.2% 0.676
Daily Fibonacci 61.8% 0.6771
Daily Pivot Point S1 0.6733
Daily Pivot Point S2 0.6713
Daily Pivot Point S3 0.6684
Daily Pivot Point R1 0.6781
Daily Pivot Point R2 0.681
Daily Pivot Point R3 0.683

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures