AUD/USD pulls away from multi-year highs, hold above 0.7900

AUD/USD lost its traction after edging higher in the Asian session.
US Dollar Index stays quiet above 90.00 on Wednesday.
FOMC Chairman Powell will testify before House Financial Services Committee.

Eren Sengezer FXStreet

The AUD/USD pair closed flat on Tuesday and climbed to its highest level in nearly three years at 0.7945 during the Asian trading hours on Wednesday. However, the pair struggled to preserve its bullish momentum and erased its daily gains. As of writing, AUD/USD was virtually unchanged on the day at 0.7910.

DXY remains on the back foot following Tuesday's recovery

The US Dollar Index (DXY) closed in the positive territory and snapped a three-day losing streak on Tuesday but struggled to extend its rebound following FOMC Chairman Jerome Powell's dovish remarks. Powell reiterated that they won't react to one-time increases in inflation and said that they will keep the policy accommodative. Currently, the DXY is posting small daily losses at 90.14.

Later in the day, Powell will deliver his remarks on the second day of his semi-annual testimony, this time before the House Financial Services Committee. New Home Sales for January will be the only data featured in the US economic docket.

The data published by the Australian Bureau of Statistics revealed on Wednesday that the Wage Price Index in the fourth quarter rose to 0.6% from 0.1% in the third quarter and beat the market expectation of 0.3%. Nonetheless, the market reaction to this report was muted. On Thursday, Private Capital Expenditure data for the fourth quarter from Australia will be looked upon for fresh impetus.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7915
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	0.7914

Trends
Daily SMA20	0.7727
Daily SMA50	0.7701
Daily SMA100	0.7481
Daily SMA200	0.7267

Levels
Previous Daily High	0.7936
Previous Daily Low	0.788
Previous Weekly High	0.7878
Previous Weekly Low	0.7724
Previous Monthly High	0.782
Previous Monthly Low	0.7592
Daily Fibonacci 38.2%	0.7914
Daily Fibonacci 61.8%	0.7901
Daily Pivot Point S1	0.7884
Daily Pivot Point S2	0.7853
Daily Pivot Point S3	0.7827
Daily Pivot Point R1	0.794
Daily Pivot Point R2	0.7966
Daily Pivot Point R3	0.7997

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.

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