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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.