•  The post-NFP USD rebound prompts fresh selling.
   •  An uptick in the US bond yields adds to the pressure.
   •  Aussie further weighed down by iron-ore price forecasts. 

The AUD/USD pair traded with a negative bias on Monday and is currently placed at session lows, around the 0.7840-35 region.

The pair once again met with some fresh supply near the 0.7875 region and was being weighed down by an extension of the post-NFP US Dollar recovery move. 

Despite a weaker-than-expected headline NFP print, the prevailing positive tone around the US Treasury bond yields underpinned the USD demand and was seen capping gains for higher-yielding currencies - like the Aussie.

The Australian Dollar was further weighed down by the latest iron-ore price forecasts by the Department of Industry, Innovation and Science, and a mildly softer tone around commodity-space.

Meanwhile, the price action seems to suggest a possible bullish exhaustion ahead of the 0.7900 handle. Hence, a follow-through long-unwinding pressure, leading to a subsequent weakness back below the 0.7800 handle, now seems a distinct possibility.

In absence of any major market moving economic releases, the pair remains at the mercy of US bond yield dynamics and the broader market sentiment surrounding the greenback.

Technical levels to watch

Immediate support is pegged near 0.7825 level, below which the pair is likely to slide back towards the 0.7800 handle before eventually dropping to 100-day SMA support near the 0.7780-75 region.

On the upside, the 0.7870-75 region now seems to have emerged as immediate resistance, above which the pair is likely to surpass the 0.7900 handle and head towards testing 0.7925-30 supply zone. 

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: A test of sacred 61.8% Fibo at 0.7050 looks imminent

AUD/USD: A test of sacred 61.8% Fibo at 0.7050 looks imminent

The AUD/USD pair has declined gradually below 0.7100 after printing a high of 0.7135 on Thursday. The asset has tumbled after sensing exhaustion in the upside momentum. However, that doesn’t warrant a bearish reversal for now but a corrective move, which is healthy for a decent uptrend.


USD/JPY: Bulls move in for the kill, 134 the figure eyed

USD/JPY: Bulls move in for the kill, 134 the figure eyed

USD/JPY are taking over in a bid for the greenback. The pair breakout could see the price move in on the neckline before the day is out for a test above 134 the figure. USD/JPY has been picked up by the bulls at a discount and is on the verge of a significant bullish correction.


Gold: Battle lines well-mapped near $1,800, focus shifts to Fed minutes

Gold: Battle lines well-mapped near $1,800, focus shifts to Fed minutes

Gold price is moving back and forth in a familiar range while trading close to the $1,800 mark, as the rebound in the US dollar and the Treasury yields keep bears in control. XAU/USD battle lines are well-defined near the $1,800 mark, where next?

Gold News

Dogecoin price to offer patient investors two opportunities

Dogecoin price to offer patient investors two opportunities

Dogecoin price is trying to establish a directional bias as it hovers aimlessly after collecting buy-stop liquidity above equal highs. Investors need to be aware of a potential downswing, especially considering the lack of momentum in Bitcoin price.

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!