AUD/USD: Rejected again at 50% Fib resistance


  • AUD/USD has failed to pierce key Fib resistance at 0.6880 despite the US-China trade optimism.
  • Australian inflation expectations cooled in September. That data may be capping gains in the AUD.

AUD/USD is currently trading at 0.6870, having faced rejection at 0.6880, which is the 50 percent Fibonacci retracement of the drop from 0.7082 to 0.6677.

The pair has faced rejection at the key Fibonacci level for the second straight day, despite optimism on the US-China trade front.

The US President Trump Thursday delayed the decision to impose extra 5% tariffs on $250 billion worth of Chinese goods by two weeks to Oct. 15, sending the risk assets higher. Notably, China's offshore Yuan clocked three-week highs against the US Dollar and the reduced haven demand for bonds pushed the US 10-year treasury yield to a one-month high of 1.76%.

Even so, the AUD is reversing lower from key Fib hurdle, possibly due to the weak domestic data - Australia's consumer inflation expectations for September came in at 3.1% vs 3.5% in August.

Looking forward, the bulls need to defend the session low of 0.6859, else the rejection at the key Fib hurdle would gain credence, possibly leading to a deeper drop to 0.6830. As of writing, the futures on the S&P 500 are reporting a 0.30% gain, so, the AUD may be able to defend 0.6859.

Technical levels

AUD/USD

Overview
Today last price 0.687
Today Daily Change 0.0007
Today Daily Change % 0.10
Today daily open 0.6863
 
Trends
Daily SMA20 0.6782
Daily SMA50 0.6858
Daily SMA100 0.6907
Daily SMA200 0.7017
Levels
Previous Daily High 0.6885
Previous Daily Low 0.6848
Previous Weekly High 0.6862
Previous Weekly Low 0.6687
Previous Monthly High 0.6869
Previous Monthly Low 0.6676
Daily Fibonacci 38.2% 0.6871
Daily Fibonacci 61.8% 0.6862
Daily Pivot Point S1 0.6846
Daily Pivot Point S2 0.6828
Daily Pivot Point S3 0.6809
Daily Pivot Point R1 0.6883
Daily Pivot Point R2 0.6902
Daily Pivot Point R3 0.692

 

 

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