AUD/USD preserves daily gains above mid-0.76s


  • The DXY extends its drop to a fresh 2-week low on Monday.
  • AUD/USD adds more than 20 pips on the day.

After recording its best weekly percentage gain since mid-July last week, the AUD/USD started the day on a positive note on Monday as it took advantage of the greenback weakness. As of writing, the pair was trading at 0.7670, adding 0.3%, on the day.

Despite a lack of fresh fundamental catalysts, the US Dollar Index is staying under a broad-based selling pressure on Monday as investors are moving to the sidelines before they see the outcome of the tax bill talks. After surging higher toward 94, the DXY is now testing the 93 mark and losing nearly 0.5% on the day.

"The prospects that the Republican-controlled legislative branch would find a compromise to tax cuts were enhanced when a few senators appeared to capitulate without much to show for it. This may have helped lift US stocks and dollar ahead of the weekend.  Each chamber must now approve the reconciliation measure, which does not look particularly like either the House or Senate bills, though the regressive thrust was maintained," BBH analysts explained in a recent report.

Technical levels to consider

The first critical resistance for the pair could be seen at 0.7715 (200-DMA) followed by 0.7770 (100-DMA) and 0.7835 (Oct. 23 high). On the downside, supports align at 0.7630 (50-DMA), 0.7585 (20-DMA) and 0.7500 (psychological level). The RSI indicator on the daily chart continues to push higher above the 50 mark, suggesting that the bullish momentum is building up. 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD slips back to low ground amid coronavirus concerns

EUR/USD is trading closer to 1.08 coronavirus headlines are weighing heavily on the market. The US dollar remains bid despite falling US yields.  Earlier, the German IFO Business Climate beat with 96.1.

EUR/USD News

GBP/USD dips below 1.29 on USD strength

GBP/USD has dipped below 1.29 as the dollar gains ground amid coronavirus headlines. The EU and the UK prepare for formal post-Brexit due to talks kicking off next week. 

GBP/USD News

Crypto market consolidates prices while crushing traders' emotions

Top 3 prices remain in range and contradict indicators pointing south. Mild "fear" sentiment is inconsistent with prices in the upper range of the upward movement. XRP may be the surprise of the week and bounce upwards for technical reasons.

Read more

Gold hits fresh multi-year tops, eyeing $1700 mark

Gold continues scaling higher amid a fresh wave of the global risk-aversion trade. Heightened fears about the economic impact of the deadly coronavirus rattled investors. Absent relevant economic data is unlikely to hinder the ongoing strong move up.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures