AUD/USD stays on the defensive bellow 0.7300

AUD/USD reverses Monday’s 2-month highs above 0.7300.
Monday’s Pfizer-led rally appears to be losing momentum.
NAB Business Confidence improved to 5 in October.

Pablo Piovano FXStreet

Following Monday’s uptick to new 2-month highs beyond 0.73 the figure, AUD/USD meets some selling pressure and recedes to the 0.7260/50 band on turnaround Tuesday.

AUD/USD meets solid hurdle near 0.7340

AUD/USD climbed to the area of 2-month peaks well above the 0.7300 mark at the beginning of the week bolstered by the generalized upbeat sentiment in the risk-associated complex, all in response to the positive news from the vaccines’ front, this time from US pharmaceutical Pfizer (NYSE: PFE).

However, the bout of optimism run out of vigour and motivated the pair to give away those initial gains and close the session with just marginal benefits.

AUD/USD now trades within a consolidative fashion in the mid-0.7200s against the backdrop of an offered bias in the broader risk complex and the steady march in the greenback after Monday’s (very) positive price action.

Earlier in the session, the NAB Business Confidence ticked higher to 5 in October (from -4), while the Business Survey also tracked by NAB improved to 1 (from 0).

AUD/USD levels to watch

At the moment the pair is receding 0.19% at 0.7263 and faces immediate contention at 0.7187 (55-day SMA) seconded by 0.7134 (100-day SMA) and then 0.6991 (monthly low Nov.2). On the other hand, a breakout of 0.7339 (monthly high Nov.9) would aim for 0.7413 (2020 high Sep.1) and finally 0.7453 (monthly high Aug.9 2018).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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