AUD/USD: Range play continues even as Aussie bond yields hit 3.5-month high


  • AUD/USD remains trapped in 0.6930-6877 trading range. 
  • The Aussie 10-year yield has hit the highest level in over three months. 
  • The low odds of a year-end RBA rate cut favor upside break. 

The AUD/USD pair remains trapped in a narrow range despite the uptick in the Aussie government bond yields. 

The pair is currently trading largely unchanged on the day at 0.6896, having hit a low of 0.6886 a few minutes before press time. Notably, the pair has been restricted to a range of 0.6930-0.6877 since Oct. 31.

A range breakout looks likely if we take into account the multi-month highs in the Aussie government bond yields. The 10-year yield is currently trading at 1.254%, the highest level since July 25, representing a 17 basis point gain on the low of 1.08 registered on Nov. 1.

So far, however, the rise in the Aussie government bond yields has failed to put a strong bid under the AUD and so has the easing of US-China trade tensions. 

That said, the probability of an upside move still looks strong, courtesy of the falling odds of a year-end rate cut by the Reserve Bank of Australia. The market is currently pricing just 23% chance of a rate cut in December. The central bank kept rates unchanged on Tuesday and sounded less dovish by signaling a pause in rate cut cycle. 

Technical levels

AUD/USD

Overview
Today last price 0.6897
Today Daily Change 0.0003
Today Daily Change % 0.04
Today daily open 0.6894
 
Trends
Daily SMA20 0.6832
Daily SMA50 0.6804
Daily SMA100 0.685
Daily SMA200 0.6953
 
Levels
Previous Daily High 0.6929
Previous Daily Low 0.686
Previous Weekly High 0.693
Previous Weekly Low 0.681
Previous Monthly High 0.693
Previous Monthly Low 0.667
Daily Fibonacci 38.2% 0.6903
Daily Fibonacci 61.8% 0.6886
Daily Pivot Point S1 0.686
Daily Pivot Point S2 0.6825
Daily Pivot Point S3 0.6791
Daily Pivot Point R1 0.6929
Daily Pivot Point R2 0.6963
Daily Pivot Point R3 0.6998

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD consolidates losses below 1.3150 amid a tighter election poll

GBP/USD is trading below 1.3150, consolidating its losses after YouGov's MRP poll showed a tighter Conservative majority ahead of the UK elections on Thursday. Trade headlines and the Fed decision are also awaited.

GBP/USD News

EUR/USD remains pressured below 1.11 amid trade uncertainty, ahead of the Fed

EUR/USD is trading below 1.11, consolidating its gains. Uncertainty about the planned US tariffs on China looms and tension is mounting ahead of US inflation and the all-important Fed decision.

EUR/USD News

Forex Today: Boris gets a blow from big poll, tariff threat looms, focus on the Fed

President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal.

Read more

Gold sidelined near $1465 level, FOMC awaited

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses, around the $1463-66 region through the early European session on Wednesday.

Gold News

USD/JPY: 200-hour EMA questions immediate rising trend-channel

USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 at the press time on Wednesday.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures