AUD/USD remains indecisive around 0.7350 as market optimism fades

AUD/USD steps back from intraday high but seesaws around 50-DMA for the fourth day.
Uptick in virus cases, China’s fear of Typhoon Chanthu weigh on sentiment.
Chatters concerning Sino-American relations, Iran’s nuclear deal and vaccines favor bulls.
A light calendar keeps risk catalysts on the drive’s seat.

Anil Panchal FXStreet

AUD/USD fades initial Asian session recovery, at par with week-start levels around 0.7358 during early Monday. In doing so, the Aussie pair struggles for a clear direction amid mixed concerns.

The chatters over US stimulus, Iran and the easing of the Sino-American tussles join the vaccine optimism to cite the positive catalysts. On the contrary, an uptick in daily virus cases and fears over Typhoon Chanthu reaching China’s mainland challenge the bulls amid a quiet start to the week.

US Democrats are up for easing their previous demands to push forward President Joe Biden’s $3.5 trillion stimulus. Biden’s six-pronged strategy and the US-China talks after multiple months of silence favor market sentiment and commodity prices. Additionally, the International Atomic Energy Agency (IAEA) Chief Rafael Grossi recently visited Tehran and returned with the good news of striking a deal with Iran to solve "the most urgent issue" between them.

Australia’s daily covid counts increase from 1,672 to 1,750 but the hopes that 80% of the population will be vaccinated by October question the covid woes. Further, authorities in Shanghai shut down schools and suspend flights on geopolitical fears. Also challenging risk appetite, as well as AUD/USD prices, is North Korea’s testing of the long-range cruise missile.

Amid these plays, S&P 500 Futures pare initial gains while the US 10-year Treasury yields stay inactive near 1.34% at the latest.

Given the lack of major data/events, as well as fears of Fed tapering, AUD/USD traders need to watch risk catalysts closely for fresh impulse.

Technical analysis

Although a convergence of 100 and 200 Exponential Moving Averages (EMAs) around 0.7350-55 becomes a strong near-term support for AUD/USD traders, the bulls remain skeptical unless crossing but a broad resistance zone near 0.7410-25 will be the key hurdle to watch afterward.

Additional impotant levels

Overview
Today last price	0.736
Today Daily Change	0.0003
Today Daily Change %	0.04%
Today daily open	0.7357

Trends
Daily SMA20	0.7308
Daily SMA50	0.7362
Daily SMA100	0.753
Daily SMA200	0.7609

Levels
Previous Daily High	0.741
Previous Daily Low	0.7348
Previous Weekly High	0.7469
Previous Weekly Low	0.7345
Previous Monthly High	0.7427
Previous Monthly Low	0.7106
Daily Fibonacci 38.2%	0.7371
Daily Fibonacci 61.8%	0.7386
Daily Pivot Point S1	0.7333
Daily Pivot Point S2	0.7309
Daily Pivot Point S3	0.7271
Daily Pivot Point R1	0.7396
Daily Pivot Point R2	0.7434
Daily Pivot Point R3	0.7458

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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