AUD/USD stays depressed around 0.7550 as firmer USD supports bears near yearly low

  • AUD/USD edges lower after a three-day downtrend that teased yearly low.
  • US dollar extends post-Fed gains as markets prepare for rate hike, Aussie data/RBA’s Lowe forgotten after initial reaction.
  • US inflation expectations drop to three month low, Treasury yields, gold follow the tune.
  • Lack of major data/events highlights key risk catalysts, market dynamics over Fed’s signals as crucial directives.

AUD/USD holds lower ground near 0.7550-55 amid a sluggish start to Friday’s Asian session. In doing so, the Aussie bears take a breather around the yearly low, attacked the previous day, following a three-day south-run. Although the market’s adjustments to the Fed’s rate-hike signals become the major catalysts backing the US dollar, also weighing on the quote, a lack of fresh clues probes further downside around multi-day low.

King Dollar keeps the reins…

The US Federal Reserve’s (Fed) gig on Wednesday roiled the US inflation expectations, fueling the rush to risk-safety, as traders brace for two rate hikes in 2023. The same put a safe-haven bid under the US dollar and propelled the US dollar index (DXY) to a two-month top, around 91.88 by the end of Thursday’s North American session.

The risk-off mood gained extra support from the downbeat prints of the US data, namely the Weekly Jobless Claims and Philadelphia Fed Manufacturing Survey.

On the other hand, Australia’s strong jobs report for May failed to keep AUD/USD buyers happy, after the initial stint. That said, RBA Governor Philip Lowe also sounds a bit nervous and exerts downside pressure on the quote.

Amid these plays, Wall Street closed mixed and the US 10-year Treasury yield drops 5.8 basis points (bps) to 1.51% at Thursday’s closing.

It’s worth noting that the escalating tension between the West and China adds to the AUD/USD weakness and so do worries concerning the Delta variants of the covid, not to forget the grim outlook over RBA’s next moves.

Looking forward, a lack of major catalysts may keep directing AUD/USD traders to follow the same route but nearness to the yearly bottom tests the bears and requires a strong blow to break the 0.7531 level. Hence, risk-related headlines will be in focus for fresh impetus.

Technical analysis

AUD/USD sellers battle 200-day SMA level of 0.7553 amid oversold RSI conditions, suggesting a pullback towards immediate hurdle surrounding the 0.7600 threshold, quickly followed by March’s low near 0.7620. However, any further weakness past 200-day SMA needs a decisive break below the year’s bottom of 0.7531 to aim for August 2020 levels near 0.7415.

Additional important levels

Today last price 0.7555
Today Daily Change -0.0054
Today Daily Change % -0.71%
Today daily open 0.7609
Daily SMA20 0.7727
Daily SMA50 0.7737
Daily SMA100 0.7726
Daily SMA200 0.7552
Previous Daily High 0.7717
Previous Daily Low 0.7607
Previous Weekly High 0.7794
Previous Weekly Low 0.7687
Previous Monthly High 0.7892
Previous Monthly Low 0.7674
Daily Fibonacci 38.2% 0.7649
Daily Fibonacci 61.8% 0.7675
Daily Pivot Point S1 0.7571
Daily Pivot Point S2 0.7534
Daily Pivot Point S3 0.7461
Daily Pivot Point R1 0.7682
Daily Pivot Point R2 0.7755
Daily Pivot Point R3 0.7792



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 hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.


GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.


XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more