AUD/USD slides to fresh session lows, around mid-0.6800s


  • AUD/USD gained some traction following the release of upbeat Chinese PMI prints.
  • The uptick lacked any follow-through amid worries about rising coronavirus cases.
  • A modest pickup in the USD demand further contributed towards capping the gains.

The AUD/USD pair failed to capitalize on its early uptick to the 0.6885 region and has now dropped to the lower end of a near one-week-old trading range.

The pair gained some traction during the Asian session on Tuesday following the release of better-than-expected Chinese data. In fact, China's official Manufacturing PMI rose to 50.9 in June from 50.6 previous, beating estimates pointing to a reading of 50.4. Adding to this, China's Non-Manufacturing PMI also surpassed expectations and came in at 54.4 for June.

However, the ever-increasing coronavirus cases globally served as a warning that the road to recovery will be much slower than expected. This, in turn, continued weighing on investors' sentiment, which benefitted the safe-haven US dollar and kept a lid on any strong gains for the perceived riskier Australian dollar, rather prompted some fresh selling.

The pair quickly retreated around 40-45 pips from the daily swing high level of 0.6885. Some follow-through selling below mid-0.6800s now seems to accelerate the fall further towards the 0.6800 round-figure mark. Failure to defend the mentioned level, leading to a subsequent weakness below the 0.6775 region now seems to pave the way for a further near-term depreciating move.

Moving ahead, market participants now look forward to the US economic docket – featuring the release of Chicago PMI and the Conference Board's Consumer Confidence Index. Later during the US session, the Fed Chair Jerome Powell, along with Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee and produce some trading opportunities.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6857
Today Daily Change -0.0008
Today Daily Change % -0.12
Today daily open 0.6865
 
Trends
Daily SMA20 0.6906
Daily SMA50 0.6664
Daily SMA100 0.6504
Daily SMA200 0.6668
 
Levels
Previous Daily High 0.6911
Previous Daily Low 0.6841
Previous Weekly High 0.6975
Previous Weekly Low 0.6811
Previous Monthly High 0.6683
Previous Monthly Low 0.6372
Daily Fibonacci 38.2% 0.6884
Daily Fibonacci 61.8% 0.6867
Daily Pivot Point S1 0.6834
Daily Pivot Point S2 0.6802
Daily Pivot Point S3 0.6764
Daily Pivot Point R1 0.6904
Daily Pivot Point R2 0.6942
Daily Pivot Point R3 0.6974

 

 

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