AUD/USD slides back closer to YTD lows, around 0.7425 region post-US CPI


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  • AUD/USD faced rejection near the 0.7500 mark and stalled its recent bounce from YTD lows.
  • COVID-19 jitters acted as a headwind for the aussie and exerted pressure amid stronger USD.
  • The already stronger USD got an additional boost following the release of the US CPI report.

The AUD/USD pair witnessed some heavy selling during the early North American session and dived to fresh daily lows, around the 0.7425 region in the last hour.

The pair struggled to capitalize on its early positive move to levels just above the key 0.7500 psychological mark and met with some fresh supply on Tuesday. The intraday pullback dragged the AUD/USD pair back closer to YTD lows touched last Friday and was sponsored by a combination of factors.

Worries about the economic fallout from the spread of the highly contagious Delta variant of the coronavirus and indications that lockdown in Sydney could be extended acted as a headwind for the aussie. Apart from this, a modest US dollar strength exerted some fresh downward pressure on the AUD/USD pair.

The intraday USD buying picked up pace during the early North American session following the release of hotter-than-expected US consumer inflation figures. In fact, the headline CPI smashed expectations and accelerated to 5.4% YoY in June. Adding to this, CPI at the core level jumped 4.5% YoY during the reported month.

The data fueled speculations that the Fed is moving towards tightening its monetary policy stance sooner than anticipated. This, in turn, provided an additional boost to the already stronger greenback and was seen as a key factor behind the AUD/USD pair's latest leg of a sudden fall over the past hour or so.

From current levels, the next relevant support is pegged near YTD lows, around the 0.7410 area. Some follow-through selling will be seen as a fresh trigger for bearish traders and set the stage for the resumption of the recent downtrend. The AUD/USD pair might then aim to test the next relevant support near the 0.7320 region.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7433
Today Daily Change -0.0042
Today Daily Change % -0.56
Today daily open 0.7475
 
Trends
Daily SMA20 0.7532
Daily SMA50 0.7663
Daily SMA100 0.769
Daily SMA200 0.7581
 
Levels
Previous Daily High 0.7496
Previous Daily Low 0.7448
Previous Weekly High 0.7599
Previous Weekly Low 0.7409
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7466
Daily Fibonacci 61.8% 0.7477
Daily Pivot Point S1 0.745
Daily Pivot Point S2 0.7424
Daily Pivot Point S3 0.7401
Daily Pivot Point R1 0.7498
Daily Pivot Point R2 0.7521
Daily Pivot Point R3 0.7547

 

 

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