AUD/USD retreats to 0.7320 as DXY rebounds above 93.00


  • AUD/USD struggles to preserve its bullish momentum in American session.
  • US Dollar Index recovers above 93.00 ahead of Fed announcements.
  • Retail Sales in US rose less than expected in August.

The AUD/USD pair climbed to its highest level in more than 10 days at 0.7344 on Wednesday but lost its traction during the American trading hours. As of writing, the pair was still up 0.2% on the day at 0.7316.

DXY climbs above 93.00 ahead of FOMC event

After spending the majority of the day in the negative territory near 92.80, the US Dollar Index (DXY) staged a rebound in the last hour and turned positive on the day above 93.00. The data from the US showed that Retail Sales in August rose by 0.6% and the NAHB Housing Market Index improved from 78 to 83 in September.

Meanwhile, investors are gearing up for the Federal Reserve's policy announcements and FOMC Chairman Jerome Powell's press conference. At the moment, the DXY is up 0.03% on the day at 93.10.

Previewing this event, “if the Fed refrains from optimism on a return to growth, it means lower rates for longer, something that markets would cheer," said FXStreet analyst Yohay Elam. "On the other hand, investors may become more concerned about the bumpy road ahead. US equities – and especially high-flying tech-stocks – have suffered a downtrend correction, that may have yet to reach the bottom.” 

A negative reaction in Wall Street could help the greenback gather further strength against its rivals through safe-haven flows and weigh on AUD/USD.

On Thursday, the Australian Bureau of Statistics will release the August labour market report.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7318
Today Daily Change 0.0016
Today Daily Change % 0.22
Today daily open 0.7302
 
Trends
Daily SMA20 0.7265
Daily SMA50 0.717
Daily SMA100 0.695
Daily SMA200 0.6762
 
Levels
Previous Daily High 0.7344
Previous Daily Low 0.7266
Previous Weekly High 0.7325
Previous Weekly Low 0.7192
Previous Monthly High 0.7416
Previous Monthly Low 0.7076
Daily Fibonacci 38.2% 0.7314
Daily Fibonacci 61.8% 0.7296
Daily Pivot Point S1 0.7264
Daily Pivot Point S2 0.7227
Daily Pivot Point S3 0.7187
Daily Pivot Point R1 0.7342
Daily Pivot Point R2 0.7382
Daily Pivot Point R3 0.7419

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds gains above 1.1850 amid tepid market mood

EUR/USD is trading above 1.1850, holding onto recent gains The uptrend, however, at risk as coronavirus cases rise across the Eurozone. New lockdown restrictions may force the ECB to adopt a stronger dovish stance. Focus shifts to Powell's speech, EZ Preliminary PMIs. 

EUR/USD News

GBP/USD hovers around 1.2950 amid likely virus curbs

GBP/USD stays well bid near  mid-1.2900s following three successive failures to cross 1.3000 during last week. UK’s health authorities mull lockdown restrictions. Chancellor Sunak may extend business support loans. Fedspeak eyed amid a light calendar. 

GBP/USD News

USD/JPY drops to over six-month lows, fast approaching 104.00 mark

USD/JPY witnessed some follow-through selling for the sixth consecutive session on Monday. The USD was being pressured by fading hopes of another round of the fiscal stimulus measures. Resurgent COVID-19 cases benefitted the safe-haven JPY and contributed to the offered tone.

USD/JPY News

Gold jumps back on the bids above $1950 amid risk-aversion

Gold is back on the bids above $1950 amid growing coronavirus fears induced risk aversion. Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. 

Gold News

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures