|

AUD/USD recovers to 100-DMA, inching closer to 0.7500 handle

The US Dollar was trading broadly weaker on Monday, with the AUD/USD pair attempting a rebound to currently trade back around 100-day SMA region and inching closer to 0.7500 handle.

Last week the pair witnessed an intense selling pressure after RBA minutes that opened doors for further rate-cut in the near-future in order to support the economy and eliminated deflationary pressure. Hence, this week Australian CPI report on Wednesday would be crucial to determine if RBA would go ahead and cut interest rates in August.

Meanwhile, the incoming US economic data continues to revive hopes of an imminent Fed rate-hike later during this year, which has been the key factor supporting the ongoing bullish sentiment surrounding the US Dollar and also increases the importance of this week's FOMC meeting. The CME group's Fed Fund rate futures are pricing-in around 40% probability of such an action in December. 

From technical perspective, any near-term recovery is seen capped at 100-day SMA just below 0.7500 handle. Hence, only a strong buying interest seems to assist the pair to stage any additional recovery from current levels.

Technical levels to watch

On the upside, 0.7500-0.7515 region seems to act as immediate strong resistance, above which the pair is likely to extend the recovery trend towards 0.7565 horizontal resistance before heading towards its next major resistance near 0.7600-0.7610 area. Meanwhile on the downside, 0.7450-40 region has now emerged as immediate support, which if broken is likely to drag the pair immediately towards 50-day SMA support near 0.7410-0.7400 region.

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

EUR/USD clings to gains around 1.1800

EUR/USD manages to regain composure and retests the 1.1800 region in quite a positive start to the week. The pair’s bounce follows the US Dollar’s offered stance post-SCOTUS ruling ahead of important US data and Fedspeak on Tuesday.

GBP/USD looks stuck around 1.3500 amid firm gains

GBP/USD is pushing further north on Monday, revisiting the 1.3500 hurdle and beyond. Cable’s uptick is largely being fuelled by the broader softness in the Greenback, amid lingering uncertainty around tariffs.

Gold pops above $5,200, four-week highs

Gold is holding onto its bullish tone on Monday, reaching new multi-week highs just past the $5,200 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Ethereum Price Forecast: BitMine's holdings reach 4.42 million ETH as Fundstrat predicts 87% win-ratio

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) scooped up 51,162 ETH last week, marking its largest purchase since December.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.