AUD/USD pares daily gains, turns flat near 0.6470 on USD strength


  • AUD/USD turns south after touching daily high of 0.6524.
  • FOMC Chairman Powell's remarks help USD gather strength.
  • US Dollar Index rebounds to 100 during American session.

The AUD/USD pair rose to a daily high of 0.6524 during the European trading hours but lost its traction as the USD started to gather strength against its rivals. As of writing, the pair was virtually unchanged on the day at 0.6470.

DXY recovers to 100

Commenting on the policy outlook, FOMC Chairman Powell said the Fed was not considering negative interest rates and noted that all policymakers were against them. Powell further noted that the evidence on negative rates was "very mixed." The initial market reaction triggered a fresh USD-buying wave and lifted the US Dollar Index (DXY) to 100 area.

Meanwhile, the only data from the US revealed that the annual core Producer Price Index (PPI) fell to 0.6% in April from 1.4% in March but was largely dismissed by the market participants.

Assessing Powell's commentary, "Powell is not warming up to negative rates as he said that the bank's view has not changed – and that all members said it was no attractive tool," said FXStreet analyst Yohay Elam. "That is set to keep equities under pressure and the dollar up.”

In the early trading hours of the Asian session on Thursday, investors will be paying close attention to Australia's jobs report. Experts expect the Unemployment Rate in April to jump to 8.3% from 5.2%. A higher-than-expected reading could weigh on the AUD and force the pair to push lower.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6475
Today Daily Change 0.0004
Today Daily Change % 0.06
Today daily open 0.6471
 
Trends
Daily SMA20 0.6419
Daily SMA50 0.6282
Daily SMA100 0.6532
Daily SMA200 0.6672
 
Levels
Previous Daily High 0.6536
Previous Daily Low 0.6432
Previous Weekly High 0.6549
Previous Weekly Low 0.6372
Previous Monthly High 0.657
Previous Monthly Low 0.598
Daily Fibonacci 38.2% 0.6472
Daily Fibonacci 61.8% 0.6497
Daily Pivot Point S1 0.6423
Daily Pivot Point S2 0.6375
Daily Pivot Point S3 0.6319
Daily Pivot Point R1 0.6527
Daily Pivot Point R2 0.6584
Daily Pivot Point R3 0.6632

 

 

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