AUD/USD rebounds from multi-month lows, lacks follow-through


  • AUD/USD remained on the defensive through the Asian session on Tuesday.
  • A turnaround in the global risk sentiment helped ease the bearish pressure.
  • Investors look forward to the US macro releases for some trading impetus.

The AUD/USD pair reversed an early dip to over three-month lows and is currently placed near the top end of its daily trading range, around the 0.6760 region.

The pair added to its recent losses and lost some additional ground through the Asian session on Tuesday. The disappointing release of National Australia Bank's (NAB) Business Confidence, which fell to its lowest level since mid-2013 in December, was seen as a key factor weighing on the Australian dollar.

Aussie finds some support amid improving risk sentiment

The pair dropped to the lowest level since October 16 but showed some resilience below mid-0.6700s. A strong recovery in the global risk sentiment, coupled with a subdued US dollar price action extended some support to perceived riskier currencies and helped ease the bearish pressure surrounding the aussie.

However, heightened anxiety about the economic impact of a deadly new coronavirus in China might continue to undermine the China-proxy aussie. Adding to this, speculations that RBA may be forced to take aggressive easing measures might further contribute towards keeping a lid on any runaway rally for the major.

Hence, it will be prudent to wait for some strong follow-through buying before positioning for any further near-term recovery move. Market participants now look forward to the US Durable Goods Orders data and the Conference Board's Consumer Confidence index for some short-term trading impetus.

Technical levels to watch

AUD/USD

Overview
Today last price 0.676
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 0.6759
 
Trends
Daily SMA20 0.6894
Daily SMA50 0.687
Daily SMA100 0.6843
Daily SMA200 0.6877
 
Levels
Previous Daily High 0.6829
Previous Daily Low 0.6752
Previous Weekly High 0.6889
Previous Weekly Low 0.6817
Previous Monthly High 0.7033
Previous Monthly Low 0.6762
Daily Fibonacci 38.2% 0.6781
Daily Fibonacci 61.8% 0.68
Daily Pivot Point S1 0.6731
Daily Pivot Point S2 0.6703
Daily Pivot Point S3 0.6654
Daily Pivot Point R1 0.6808
Daily Pivot Point R2 0.6857
Daily Pivot Point R3 0.6885

 

 

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