AUD/USD remains on the defensive above 0.6650 amid the risk-off tone, renewed US Dollar demand

AUD/USD remains under pressure near 0.6660 amid the risk-off mood.
Fed’s Bostic said rates would need to remain on hold until after the summer.
Australian TD Securities inflation arrived at 5.2% YoY in December vs. 4.4% prior.
Investors await the Australian Westpac Consumer Confidence for January and the US New York Empire State Manufacturing Index on Tuesday.

Lallalit Srijandorn FXStreet

The AUD/USD pair extends its downside above the mid-0.6600s during the early Asian session on Tuesday. The risk-off tone across markets lifts the safe-haven US Dollar (USD) and weighs on the pair. At press time, AUD/USD is trading at 0.6660, up 0.02% on the day.

Atlanta Federal Reserve (Fed) president Raphael Bostic believes the interest rate needs to stay on hold until at least summer to prevent prices from rising again. Bostic added that inflation could “see-saw” if policymakers start to ease too soon, warning that the decline towards the central bank's 2% target was likely to slow in the months ahead.

Concerns regarding geopolitical risks dominated the sentiment of market participants. According to the US Central Command, a US-owned and operated container ship on Monday was struck by an anti-ship ballistic missile from Houthi-controlled areas of Yemen. It comes only days after the United States and the United Kingdom launched joint strikes against Houthi targets in Yemen.

On the Aussie front, the Australian TD Securities inflation came in at 5.2% YoY in December from 4.4% in November. Meanwhile, the ANZ Job Advertisements grew 0.1% MoM from a 5.1% fall in the previous reading.

On Monday, the People's Bank of China (PBoC) surprised the market by maintaining the rate on its medium-term facility steady at 2.5%. This has increased anticipation that the Reserve Requirement Ratio will be reduced the following month.

Traders will focus on the Australian Westpac Consumer Confidence for January and the US New York Empire State Manufacturing Index, due later on Tuesday. Additionally, FOMC C. Waller is set to speak. Market players will take cues from the data and find trading opportunities around the AUD/USD pair.

AUD/USD

Overview
Today last price	0.666
Today Daily Change	-0.0023
Today Daily Change %	-0.34
Today daily open	0.6683

Trends
Daily SMA20	0.6755
Daily SMA50	0.6632
Daily SMA100	0.6513
Daily SMA200	0.6584

Levels
Previous Daily High	0.6729
Previous Daily Low	0.6678
Previous Weekly High	0.6735
Previous Weekly Low	0.6647
Previous Monthly High	0.6871
Previous Monthly Low	0.6526
Daily Fibonacci 38.2%	0.6697
Daily Fibonacci 61.8%	0.6709
Daily Pivot Point S1	0.6665
Daily Pivot Point S2	0.6646
Daily Pivot Point S3	0.6614
Daily Pivot Point R1	0.6715
Daily Pivot Point R2	0.6747
Daily Pivot Point R3	0.6766

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

GBP/USD clings to daily gains near 1.3350

GBP/USD holds just in positive territory around 1.3350 on Friday as the Greenback keeps a vacillating price action. With Fed rate hike expectations easing and US markets closed for the Independence Day holiday, Cable remains on track to post solid weekly gains.

EUR/USD remains sidelined around 1.1440

EUR/USD holds on to its recent gains and consolidates around 1.1440 at the end of the week as the US Dollar lacks clear direction. In the meantime, trading conditions remain subdued, with volatility constrained by the closure of US markets for the Independence Day holiday.

Gold flirts with two-week highs, targets $4,200

Gold extends its recovery for a third straight day, advancing toward the $4,200 mark per troy ounce on Friday. The precious metal looks set to snap a four-week losing streak as softer-than-expected June US NFP data prompt investors to scale back expectations of further Fed tightening.

Crypto Today: Bitcoin, Ethereum, XRP advance amid renewed capital inflows

Bitcoin maintains its upward momentum, holding above the $61,000 mark at the time of writing on Friday. Major altcoins such as Ethereum and Ripple are also posting gains, signaling a modest uptick in market sentiment and renewed risk appetite among investors.

The Iran war failed to trigger a recession. Can the US economy keep defying expectations?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.