AUD/USD remains below 100-day EMA amid few fresh catalysts

With the global markets keep praising the greenback strength, the AUD/USD pair remains on a back foot under 100-day EMA while making the rounds to 0.7000 during early Wednesday.

Be it the extension of the US debt/spending limit or fewer calls favoring a heavy Fed rate cut in July, the US Dollar (USD) benefited from all and pleased the bulls on Tuesday. Buyers even ignored sluggish prints of the second-tier US data in search of better returns.

Global risk sentiment was also buoyed by trade positive headlines. The US 10-year treasury yields rose more than 3 basis points to 2.078% by the press time.

Given the traders’ preference for the USD over the Australian Dollar (AUD), better than forecast prints of Weekly ANZ Roy Morgan Consumer Confidence data from Australia was largely ignored.

Moving on, markets await fresh clues on the US-China trade deal for near-term direction amid no data/event scheduled at home. It should also be noted that the US economic calendar offers few readings during the later part of the day.

Technical Analysis

Despite declining below a 100-day exponential moving average (EMA), the Aussie couldn’t break 0.7000 – 0.6995 support-zone comprising 21-day EMA, July 17 low and July 08 high, which in turn signals brighter chances of the quote’s pullback to 0.7020 number comprising the broader EMA. Should price manage to remain strong above 0.7020, July 19 top close to 0.7080 should become buyers’ preference. Meanwhile, a downside break of 0.6995 can have 0.6980 and 0.6910 mark including July 10 bottom as following rest-points.