AUD/USD slides to fresh session lows, below mid-0.7800s

   •  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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pierces 1.1655 resistance as firmer sentiment weighs on USD

EUR/USD is holding higher ground above 1.1650 ahead of the German IFO survey. Weaker US Treasury yields, risk reset weigh on US dollar. ECB, US GDP in focus but China headlines, Fed tapering concerns will lead the sentiment.


GBP/USD jumps towards 1.3800 amid Brexit hopes, weaker dollar

GBP/USD is advancing towards 1.3800, snapping a two-day downtrend as the US dollar loses ground amid an improving risk tone. UK's Frost hints at compromise on Northern Ireland’s post-Brexit trade rules. BOE-speak, China news in focus. 


Gold hovers around $1,800 amid softer USD

Gold trades with gains on Monday, extending the previous week’s upside momentum. The yellow metal posts the gains for the fifth straight session. The US benchmark 10-year Treasury yields trade below 1.65%, with 0.78% losses, enhancing non-yielding bullion’s appeal.

Gold News

SafeMoon price presents a buy opportunity before 35% gains

SafeMoon price coils up under a crucial resistance level at $0.00000239. A sudden burst in buying pressure that shatters this barrier can kick-start a 35% ascent. In some cases, SAFEMOON could pull back to $0.00000198 or $0.00000175 support floors.

Read more

Wall Street Week Ahead: Huge week of earnings ahead AAPL, MSFT, GOOGL, AMZN, FB

Equity markets remain elevated with more all-time highs on Thursday for the broader S&P 500 while the Dow registered new highs on Wednesday and Thursday. So far late into Friday's session, the markets are seeing some profit-taking to end a solid week.

Read more