- AUD/USD picks up bids to intraday top but struggles to extend previous day’s gains.
- Victoria, South Australia up for easing local lockdowns, NSW spoils the mood.
- US Senators jostle over infrastructure spending, Sino-American tussles escalate.
- RBA’s Debelle, US Durable Goods Orders will be important for near-term directions.
AUD/USD edges higher around the intraday top, recently easing 0.7383, amid a quiet Asian session on Tuesday. The Aussie pair registered a positive daily closing the previous day as the covid counts eased in the Pacific major. However, the market’s cautious sentiment ahead of the key data/events, coupled with the US-China tension and US infrastructure spending deadlock, weighs on the prices.
With the lowest daily infections since July 15, Victoria is up for easing the lockdown restrictions while South Australia may also follow the suit with zero virus-related fresh cases. However, the authorities from New South Wales (NSW) are worried over the recent jump in covid numbers and death tolls, while also being criticized for vaccinations.
Elsewhere, the UK marked a sixth consecutive daily fall in the covid infections on Monday to a new low in over three weeks, to 24,950 on Monday from 29,173 on Sunday per Reuters. Though, the US fades victory over the pandemic and keeps borders closed amid fears of covid variant.
On a different page, US lawmakers remain at loggerheads over President Joe Biden’s infrastructure spending passage. The latest comments from US Democratic Senator Joe Manchin were, “Hell no, we're not pulling the plug”, tweeted CNN’s Manu Raju. It’s worth noting that China’s crackdown on technology talks and the Sino-American talks over the US visa restrictions on Chinese diplomats.
Amid these plays, Wall Street benchmarks posted record daily closings but S&P 500 Futures struggle of late. Further, the US 10-year Treasury yields remain firmer around 1.29% by the press time.
Given the lack of major data/events in Asia, AUD/USD traders will keep their eyes on the early signal for US Q2 GDP, namely Durable Goods Orders for June. Also important will be the comments from RBA Assistant Governor Guy Debelle.
Should the RBA official backs the Aussie central bank’s recently dovish forecasts and covid fears, coupled with the strong US data, AUD/USD may pare the latest gains.
Despite overcoming a three-week-old resistance line, now support, around 0.7360, AUD/USD bulls need to cross 0.7440 hurdle, comprising 21-DMA and a descending trend line from June 11, to retake the controls.
Additional important levels
|Today last price||0.7386|
|Today Daily Change||0.0002|
|Today Daily Change %||0.03%|
|Today daily open||0.7384|
|Previous Daily High||0.7391|
|Previous Daily Low||0.733|
|Previous Weekly High||0.7417|
|Previous Weekly Low||0.7288|
|Previous Monthly High||0.7794|
|Previous Monthly Low||0.7477|
|Daily Fibonacci 38.2%||0.7368|
|Daily Fibonacci 61.8%||0.7353|
|Daily Pivot Point S1||0.7346|
|Daily Pivot Point S2||0.7308|
|Daily Pivot Point S3||0.7285|
|Daily Pivot Point R1||0.7407|
|Daily Pivot Point R2||0.7429|
|Daily Pivot Point R3||0.7468|
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.