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


Share:
  • 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

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD stays below 1.0900 as Q1 comes to an end

EUR/USD stays below 1.0900 as Q1 comes to an end

EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.

EUR/USD News

GBP/USD trades below 1.2400, looks to post weekly gains

GBP/USD trades below 1.2400, looks to post weekly gains

 

GBP/USD has edged lower after having tested 1.2400 earlier in the day but remains on track to end the third straight week in positive territory. The upbeat mood remains intact after soft PCE inflation data from the US, making it difficult for the US Dollar to continue to gather strength.

GBP/USD News

Gold tries to stabilize near $1,980 following earlier spike

Gold tries to stabilize near $1,980 following earlier spike

Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.

Gold News

Will Dogecoin price pull an XRP and rally 60% next week?

Will Dogecoin price pull an XRP and rally 60% next week?

Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.

Read more

Week ahead – Nonfarm payrolls to set the tone for US dollar

Week ahead – Nonfarm payrolls to set the tone for US dollar

With the banking turmoil receding, market participants will turn their attention back to economic releases. The spotlight will fall on the US employment report.

Read more

Forex MAJORS

Cryptocurrencies

Signatures