• AUD/USD consolidates recent gains around multi-day top, renews intraday low of late.
  • Australia’s S&P Global Manufacturing PMI for May came in softer but Services PMIs rose past market consensus.
  • Risk-on mood, hopes from new government previously favored bulls.
  • US activity data, Fed’s Powell and headlines from Quad, as well as concerning China, will be important for fresh impulse.

AUD/USD holds lower ground near the intraday low after downbeat Australia activity data allowed the bulls to take a breather after refreshing two-week top. That said, the Aussie pair remains pressured around 0.7090 by the press time of the initial Asian session on Tuesday.

That said, Australia’s preliminary readings of the S&P Global Manufacturing PMI for May dropped to 55.3, versus 57.8 expected and 58.8 prior, whereas the Services counterpart improved from 52.2 forecast to 53.0, compared to 56.6 prior (revised). As a result, the Composite PMI also eased to 52.5 from 55.9 prior.

Also allowing the quote to pare recent gains is the downbeat prints of the S&P 500 Futures, printing 0.65% intraday losses by the press time, despite the Wall Street benchmarks’ gains.

Comments from San Francisco Federal Reserve Bank President Mary Daly seem to have triggered the latest risk-off mood. “I think that we can weather this storm, get the interest rate up...price stability restored and still leave Americans with jobs aplentiful and with growth expanding as we expect it to," said the policymaker during an interview with Fox News on Monday.

Previously, the risk-on mood joined a lack of bullish bias to drag the US Dollar Index (DXY) to a two-week low. In doing so, the US Dollar Index (DXY) extended the first weekly loss in seven as mixed covid signals from China, mostly positive, join the repeated Fedspeak around a 50 bps rate-hike, contrary to the recently hawkish comments from the ECB policymakers. Also weighing on the greenback were the headlines from Japan where US President Joe Biden mentioned that he is considering reducing tariffs on China. In addition to the softer USD, hopes from the Labour Party, as they retake control in Australia after nine years, also favored AUD/USD buyers earlier.

Moving on, risk catalysts like headlines from Quad Summit in Tokyo and covid updates from China can entertain AUD/USD traders ahead of the US preliminary readings of the S&P Global Manufacturing and Services PMIs for May. . Also, Fed’s Powell is always crucial to move the markets and can do so if refrained from the usual support for a 50 bps rate hike trajectory.

Technical analysis

A daily closing beyond a seven-week-old descending trend line, around 0.7070 by the press time, keeps AUD/USD buyers hopeful of challenging the monthly high surrounding 0.7265.

Additional important levels

Overview
Today last price 0.709
Today Daily Change 0.0051
Today Daily Change % 0.72%
Today daily open 0.7039
 
Trends
Daily SMA20 0.7043
Daily SMA50 0.7274
Daily SMA100 0.7236
Daily SMA200 0.7262
 
Levels
Previous Daily High 0.7074
Previous Daily Low 0.7002
Previous Weekly High 0.7074
Previous Weekly Low 0.6872
Previous Monthly High 0.7662
Previous Monthly Low 0.7054
Daily Fibonacci 38.2% 0.703
Daily Fibonacci 61.8% 0.7047
Daily Pivot Point S1 0.7003
Daily Pivot Point S2 0.6967
Daily Pivot Point S3 0.6931
Daily Pivot Point R1 0.7074
Daily Pivot Point R2 0.711
Daily Pivot Point R3 0.7146

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures