• AUD/USD consolidates the previous weekly losses, retreats from intraday high of late.
  • Easing Omicron fears join market’s preparation for hawkish Fed to underpin recent risk-on mood, yields, gold both print mild gains.
  • Hawkish bets on RBA gain traction after the last week’s firmer Aussie data.
  • Aussie PMIs came in softer, US Markit activity numbers for January in focus.

AUD/USD pares intraday gains around 0.7180, up 0.08% on a day, following an upbeat start to the key week during the early Asian session.

The Aussie pair initially ignored mixed Australia PMIs from Commonwealth Bank (CBA) as virus updates were positive. The recovery moves gained on firmer prices of gold afterward. However, pre-Fed fears and geopolitical tension surrounding Russia-Ukraine tensions recently weighed down the Aussie prices.

That said, preliminary readings of January CBA Manufacturing PMI eased to 55.3, below 55.9 forecast and 57.4 revised down prior readings whereas Services PMI slumped into contraction territory with 45 figure compared to 51.8 expected and 55.1 prior.

Elsewhere, Australia’s daily covid infections ease for the fifth consecutive day, to recently around 28,100. However, the death toll keeps climbing and challenge the optimists.

It’s worth noting that the US State Department and UK Deputy Prime Minister Dominic Raab both flashed warnings over Russia’s preparations for invading Ukraine, which in turn magnified geopolitical fears.

Amid these plays, the US 10-year Treasury yields rose 2.4 basis points (bps) to 1.77%, after posting the first weekly decline in five, whereas the S&P 500 Futures rise 0.50% while licking the previous week’s wounds amid the mostly quiet session.

“Last week we argued the RBA would end quantitative easing in February, despite the uncertainty caused by Omicron. With the December employment report confirming the economy finished 2021 with exceptional momentum, we are even more confident about that call. Given how the labor market finished 2021, an explicit decision to move to QT is likely on the table for the February meeting,” said ANZ.

That said, AUD/USD traders will pay attention to Tuesday’s Australia Consumer Price Index (CPI) for Q4, expected 1.0% versus 0.8% QoQ prior, for fresh impulse. However, Fed’s verdict on the March rate hike will be more important to follow.

Read: Fed Preview: Three ways Powell could out-dove markets, dealing a blow to the dollar

Technical analysis

Having registered multiple failures to cross the 100-DMA, AUD/USD dropped below an ascending support line from early December 2021, forming part of a two-month-old rising wedge bearish pattern.

Given the downbeat MACD and RSI conditions, bears do have upper hands and are likely to dominate on the clear break of 0.7170.

That said, the 0.7100 threshold will be imminent support for the AUD/USD sellers to watch following the 0.7170 breakdowns.

Alternatively, a clear upside break of the 100-DMA level surrounding 0.7280 isn’t a green card for the AUD/USD bulls as the previous support line from August and a descending trend line from May, respectively around 0.7350 and 0.7400, will challenge the further upside.

Additional important levels

Today last price 0.7181
Today Daily Change 0.0005
Today Daily Change % 0.07%
Today daily open 0.7176
Daily SMA20 0.722
Daily SMA50 0.7192
Daily SMA100 0.7278
Daily SMA200 0.7413
Previous Daily High 0.7233
Previous Daily Low 0.717
Previous Weekly High 0.7277
Previous Weekly Low 0.7169
Previous Monthly High 0.7278
Previous Monthly Low 0.6993
Daily Fibonacci 38.2% 0.7194
Daily Fibonacci 61.8% 0.7209
Daily Pivot Point S1 0.7153
Daily Pivot Point S2 0.7131
Daily Pivot Point S3 0.7091
Daily Pivot Point R1 0.7216
Daily Pivot Point R2 0.7256
Daily Pivot Point R3 0.7278



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

AUD/USD bulls seek a break of 0.6925 for 0.6950 target area

AUD/USD bulls seek a break of 0.6925 for 0.6950 target area

AUD/USD is consolidated at the start of the Asian day following some back and forth at the start of the week. The Aussie is trading at 0.6922 and will be dependent on the trajectory of the greenback in the absence of domestic data this week other than Retail Sales tomorrow. 


EUR/USD retreats from fortnight high near 1.0600 on recession/inflation fears

EUR/USD retreats from fortnight high near 1.0600 on recession/inflation fears

EUR/USD holds onto the pullback from a two-week high as bulls get rejections from short-term key resistances, as well as risk-off mood, during Tuesday’s Asian session. The major currency pair remains pressured around 1.0585.


Gold sees downside below $1,820, focus shifts to Fed Powell

Gold sees downside below $1,820, focus shifts to Fed Powell

Gold price displayed a failed attempt to sustain above the critical resistance of $1,840.00 on Monday. The precious metal has turned sideways after a sheer downside move and is expected to extend its losses after violating the crucial support of $1,820.85.

Gold News

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price shows optimism to start the final week of June. The potential for a new bull run is beginning to materialize. LUNA price sees an uptick in social media commentary.

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!