AUD/USD: Rebound in Aussie exports fails to lift the AUD

AUD/USD fails to draw bids despite a rebound in Aussie exports.
Exports rose 2.4%, while imports increased by 1%.
Australia's Retail Sales growth for June has been revised higher to 2.7%.
Trade surplus missed expectations by a big margin.

Omkar Godbole FXStreet Contributor

AUD/USD continues to trade in the red near 0.7115 despite the rebound in Australia’s exports.

Outbound shipments or exports rose 3% in June following May’s 4% contraction. In addition, consumer spending, as represented by seasonally adjusted retail sales rose 2.7% month-on-month in June, beating the preliminary forecast of 2.4%.

Even so, the AUD is struggling to draw bids. That’s probably because trade surplus rose only slightly to AUD 8,202 million from AUD 8,025 million, missing the forecast of AUD 8,800 million by a big margin. Take note that imports rose 1% following May’s 6% contraction.

Also, the sell-off in the American dollar has stalled with sentiment reaching bearish extremes. The upbeat print of ISM Manufacturing PMI released Monday may be helping the US dollar stay bid and keep the AUD/USD under pressure.

Looking ahead, all eyes will be on the Reserve Bank of Australia’s monetary policy decision and Statement of Monetary Policy (SoMP). The RBA is likely to maintain the status quo on Tuesday and reiterate the willingness to do more if required. Traders would watch out for comments on the exchange rate. The AUD/USD pair has rallied by over 1,700 pips in the last 4.5 months. So far, however, the central bank has refrained from aggressively talking down the Aussie dollar.

Technical levels

AUD/USD

Overview
Today last price	0.7118
Today Daily Change	-0.0005
Today Daily Change %	-0.07
Today daily open	0.7123

Trends
Daily SMA20	0.7059
Daily SMA50	0.6947
Daily SMA100	0.6621
Daily SMA200	0.67

Levels
Previous Daily High	0.715
Previous Daily Low	0.7076
Previous Weekly High	0.7228
Previous Weekly Low	0.7087
Previous Monthly High	0.7228
Previous Monthly Low	0.6876
Daily Fibonacci 38.2%	0.7104
Daily Fibonacci 61.8%	0.7122
Daily Pivot Point S1	0.7082
Daily Pivot Point S2	0.7042
Daily Pivot Point S3	0.7008
Daily Pivot Point R1	0.7157
Daily Pivot Point R2	0.7191
Daily Pivot Point R3	0.7231

Author

Omkar Godbole

FXStreet Contributor

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

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.