• AUD/USD retreats from daily top as bulls struggle to keep the bounce off one-week low.
  • RBA Minutes reiterated readiness to be patient, cited achievement of goals within sight for the first time in several years.
  • Market sentiment sours amid Ukraine-Russia chatters, hawkish Fedspeak.
  • US data, Fedspeak will add burden to the watchers’ list, risk catalysts are the key.

AUD/USD steps back from intraday high to 0.7130 as RBA Minutes fail to support the pair’s early Asian session corrective pullback during Tuesday. Also challenging the Aussie pair buyers is the weaker risk appetite amid Russia-linked headlines and Fedspeak, due to the quote’s risk barometer status.

That said, the latest Minutes of the Reserve Bank of Australia (RBA) monetary policy meeting stated, “Members observed that the achievement of the goals was within sight for the first time in several years.” However, the comments line, “Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve,” challenged AUD/USD buyers.

Read: RBA minutes: Members observed that inflation had picked up more quickly than the bank had expected

On the other hand, headlines covering Russian Foreign Minister Sergey Lavrov initially helped the markets to stay optimistic over no imminent fears of the Russia-Ukraine war, as he showed likes for the US proposals. However, comments like, “EU and NATO responses have not been satisfactory,” kept the risk-off mood high.

Also challenging the market sentiment were comments from St. Louis Fed President James Bullard who repeated his call for 100 basis points (bps) in interest rate hikes by July 1 by citing the last four inflation reports which show broadening inflationary pressures.

Amid these plays, the US Treasury yields consolidate the previous day’s recovery moves with the fresh drop to 1.979%, down 1.7 basis points (bps) whereas S&P 500 Future print mild losses at the latest. On Monday, the bond coupons regained upside momentum after stepping back from a 2.5-year high on Friday whereas the Wall Street benchmark closed in the red, despite mildly positive week-start performance.

Having witnessed the initial market reaction to the RBA Minutes, AUD/USD pair traders will keep their eyes on the risk catalysts. Also important will be, the US Producer Price Index (PPI) for January, expected 9.1% YoY versus 9.7% prior, as well as the Empire State Manufacturing Index for February, bearing the market consensus of 12 versus -0.7% previous readouts.

Technical analysis

The 21-DMA and previous support line from January 28, respectively around 0.7135 and 0.7160, restrict the short-term upside of the AUD/USD prices ahead of the key 100-DMA resistance surrounding 0.7245.

Meanwhile, 0.7080 and the 0.7000 threshold may entertain short-term sellers.

Additional important levels

Overview
Today last price 0.7129
Today Daily Change 0.0007
Today Daily Change % 0.10%
Today daily open 0.7122
 
Trends
Daily SMA20 0.7132
Daily SMA50 0.7171
Daily SMA100 0.7246
Daily SMA200 0.7361
 
Levels
Previous Daily High 0.7151
Previous Daily Low 0.7086
Previous Weekly High 0.725
Previous Weekly Low 0.7064
Previous Monthly High 0.7315
Previous Monthly Low 0.6966
Daily Fibonacci 38.2% 0.711
Daily Fibonacci 61.8% 0.7126
Daily Pivot Point S1 0.7088
Daily Pivot Point S2 0.7054
Daily Pivot Point S3 0.7023
Daily Pivot Point R1 0.7153
Daily Pivot Point R2 0.7184
Daily Pivot Point R3 0.7218

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD holds onto the previous day’s bounce off important support while taking rounds to 0.6870 during Thursday’s inactive early Asian session. In addition to defending the corrective pullback, the Aussie pair also portrays the market’s anxiety ahead of important data from a major customer China.

AUD/USD News

USD/JPY advances towards 137.00 amid firmer DXY and mixed Japan data

USD/JPY advances towards 137.00 amid firmer DXY and mixed Japan data

The USD/JPY pair is aiming to recapture its fresh 23-year high around 137.00 as the DXY has strengthened on hawkish commentary from Fed chair Jerome Powell. Japan’s mixed Industrial production data has weakened the yen bulls further.

USD/JPY News

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold Price struggles to defend the previous day’s bounce off short-term key support during Thursday’s Asian session. In doing so, the yellow metal remains indecisive around $1,818. The yellow metal dropped to the lowest levels in two weeks the previous day.

Gold News

Polygon's MATIC price signals hard times to come, here's why

Polygon's MATIC price signals hard times to come, here's why
Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 low
Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures