AUD/USD pares majority of daily gains ahead of 10-year US note auction, stays above 0.7700

AUD/USD lost its traction after climbing to 0.7750 area.
US Dollar Index posts small daily gains around 92.00.
Investors await 10-year US note auction at 1800 GMT.

Eren Sengezer FXStreet

The AUD/USD pair advanced to a daily high of 0.7746 in the early trading hours of the American session but struggled to preserve its bullish momentum. With the greenback finding some demand, the pair erased a large portion of its daily gains and was last seen trading modestly higher on the day at 0.7715.

Focus shifts to US 10-year note auction

Earlier in the day, the data published by the US Bureau of Labor Statistics showed that the Core Consumer Price Index (CPI) in February edged lower to 1.3% and missed the market expectation of 1.4%. This reading failed to trigger a market reaction but the positive start seen in Wall Street's main indexes caused the greenback to start losing strength against its rivals.

On the other hand, Reserve Bank of Australia's (RBA) Governor Phillip Lowe's dovish comments are also keeping AUD/USD's upside limited. Lowe said that the RBA is considering extending the bond purchase programme.

The US Dollar Index (DXY) dropped below 92.00 in the early American session but didn't have a difficult time limiting its losses with investors moving to the sidelines ahead of the 10-year US note auction at 1800 GMT. At the moment, the DXY is in the positive territory at 92.02. Meanwhile, the 10-year US T-bond yield is virtually unchanged at 1.523%.

In the early trading hours of the Asian session on Thursday, the Consumer Inflation Expectations data from Australia will be looked upon for fresh impetus.

Technical levels to consider

AUD/USD

Overview
Today last price	0.7717
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	0.7718

Trends
Daily SMA20	0.7784
Daily SMA50	0.7737
Daily SMA100	0.7544
Daily SMA200	0.7323

Levels
Previous Daily High	0.7726
Previous Daily Low	0.762
Previous Weekly High	0.7838
Previous Weekly Low	0.7622
Previous Monthly High	0.8008
Previous Monthly Low	0.7562
Daily Fibonacci 38.2%	0.7686
Daily Fibonacci 61.8%	0.7661
Daily Pivot Point S1	0.765
Daily Pivot Point S2	0.7583
Daily Pivot Point S3	0.7545
Daily Pivot Point R1	0.7756
Daily Pivot Point R2	0.7794
Daily Pivot Point R3	0.7861

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.