AUD/USD Price Analysis: Refreshes 3-month lows, focus on risk assets

AUD/USD drops to fresh six-month lows near 0.6730.
The risk-off tone in the global equities seems to be weighing over the Aussie.

Omkar Godbole FXStreet Contributor

The Australian dollar continues to bleed amid coronavirus-led risk aversion in the equity markets.

AUD/USD pair traded at 0.6732 soon before press time. That was the lowest level since Oct. 16.

The pair had carved out a Doji candle and a Spinning Bottom candle on Tuesday and Wednesday, respectively, signaling seller exhaustion. So far, however, the bulls have failed to capitalize on that, allowing the pair to set fresh three-month low below Wednesday'slow of 0.6735.

Both the daily and weekly charts are biased bearish. As a result, further decline toward 0.67 cannot be ruled out.

That said, if the equity markets turn green, signaling a risk reset, the Aussie dollar will likely follow suit. On the higher side, resistance is seen at 0.6777 (Wednesday's high), above which the focus would shift to 0.6849 (Jan. 8 low).

At press time, the AUD/USD pair is trading at 0.6737 and the futures on the S&P 500 are reporting a 0.42% drop.

Daily chart

Trend: Cautiously bearish

Technical levels

AUD/USD

Overview
Today last price	0.6738
Today Daily Change	-0.0014
Today Daily Change %	-0.21
Today daily open	0.6752

Trends
Daily SMA20	0.6868
Daily SMA50	0.6868
Daily SMA100	0.6841
Daily SMA200	0.6874

Levels
Previous Daily High	0.6778
Previous Daily Low	0.6735
Previous Weekly High	0.6889
Previous Weekly Low	0.6817
Previous Monthly High	0.7033
Previous Monthly Low	0.6762
Daily Fibonacci 38.2%	0.6751
Daily Fibonacci 61.8%	0.6762
Daily Pivot Point S1	0.6732
Daily Pivot Point S2	0.6712
Daily Pivot Point S3	0.6689
Daily Pivot Point R1	0.6775
Daily Pivot Point R2	0.6798
Daily Pivot Point R3	0.6818

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.