• AUD/USD came under renewed selling pressure on Wednesday amid resurgent USD demand.
  • Recession fears continued weighing on investors’ sentiment and benefitted the safe-haven USD.
  • Traders now eye US Durable Goods Orders for some impetus ahead of the FOMC meeting minutes.

The AUD/USD pair witnessed an intraday turnaround from the 0.7120 region on Wednesday and continued losing ground through the mid-European session. The downward trajectory dragged spot prices back closer to the weekly low, below mid-0.7000s, and was sponsored by resurgent US dollar demand.

In fact, the key USD Index staged a solid rebound from a nearly one-month low touched the previous day and was supported by growing concerns about softening global economic growth. The prospects for a more aggressive move by major central banks to constrain inflation, the Russia-Ukraine war and the latest COVID-19 outbreak in China have been fueling recession fears.

The worries continued weighing on investors' sentiment, which was evident from a generally weaker tone around the equity markets. This, in turn, helped revive demand for the safe-haven greenback and drove flows away from the perceived riskier aussie. Apart from this, a strong intraday USD uptick could further be attributed to some repositioning trade ahead of the FOMC minutes.

A 50 bps Fed rate hike move at the next two meetings is fully priced in and hence, market participants will look for clues about the possibility of a jumbo rate hike in June. This will play a key role in influencing the USD price dynamics and provide a fresh directional impetus to the AUD/USD pair. In the meantime, traders might take cues from the US Durable Goods Orders data.

Technical levels to watch

AUD/USD

Overview
Today last price 0.7052
Today Daily Change -0.0052
Today Daily Change % -0.73
Today daily open 0.7104
 
Trends
Daily SMA20 0.7038
Daily SMA50 0.7271
Daily SMA100 0.7234
Daily SMA200 0.726
 
Levels
Previous Daily High 0.7114
Previous Daily Low 0.7056
Previous Weekly High 0.7074
Previous Weekly Low 0.6872
Previous Monthly High 0.7662
Previous Monthly Low 0.7054
Daily Fibonacci 38.2% 0.7078
Daily Fibonacci 61.8% 0.7092
Daily Pivot Point S1 0.7069
Daily Pivot Point S2 0.7033
Daily Pivot Point S3 0.701
Daily Pivot Point R1 0.7127
Daily Pivot Point R2 0.715
Daily Pivot Point R3 0.7186

 

 

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