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 revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold resumes downside toward $4,400 despite US Dollar pullback

Gold gives up recovery and resumes its downside toward $4,400 in the Asian session on Monday. Fed Chair Kevin Warsh’s Jackson Hole speech was perceived as hawkish, raising expectations for a September rate hike. Adding to this, fresh US strikes on Iran act as a tailwind for the safe-haven US Dollar and should cap the bullion.

Week ahead: RBNZ and BoC decide on rates ahead of all-important US NFP

The US dollar staged a modest recovery this week, perhaps as traders decided to cover some of their short positions amid slightly stickier or in-line US PCE inflation numbers for July, confounding expectations of softer prints amid the softness revealed in the CPI data for the month.

US Dollar Weekly Forecast: Focus is back on 100.00 as Fed hawks take centre stage

It has already been a positive week for the US Dollar, but a hawkish speech from Chair Kevin Warsh at the Jackson Hole Symposium may have laid the groundwork for a more sustained rebound in the Buck.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.