AUD/USD steadies around 0.7170, looks to register small daily gains

AUD/USD erases major portion of daily gains during American session.
US Dollar Index remains on track to close second straight day higher.
Upbeat market mood helps AUD stay resilient against its rivals.

Eren Sengezer FXStreet

The AUD/USD pair rose above 0.7200 earlier in the day but struggled to preserve its momentum as the USD started to gather strength during the American session. After erasing a large part of the daily gains, the pair seems to have stabilized around 0.7170 and remains on track to close the day modestly higher.

DXY rebounds above 93.20

Following the US FDA's authorization to use antibody-rich blood plasma treat patients infected with COVID-19, markets turned risk-positive at the start of the week. The greenback struggled to find demand as a safe-haven and the US Dollar Index (DXY) dropped below 93.00.

However, the risk-on environment helped the US Treasury bond yields gain traction and provided a boost to the USD. With the DXY turning positive on the day above 93.20, AUD/USD reversed its course and retraced its daily advance. At the moment, the 10-year US T-bond yield is up nearly 2% and the DXY looks to end the second straight trading in the positive territory.

On Tuesday, the market action in the Asian session is likely to be choppy. In the second half of the day, New Home Sales, Richmond Fed Manufacturing Index and Conference Board Consumer Confidence Index data will be featured in the US economic docket. Later in the week, FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium will be watched closely by investors.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.717
Today Daily Change	0.0010
Today Daily Change %	0.14
Today daily open	0.716

Trends
Daily SMA20	0.7173
Daily SMA50	0.7041
Daily SMA100	0.6789
Daily SMA200	0.6721

Levels
Previous Daily High	0.7216
Previous Daily Low	0.7138
Previous Weekly High	0.7277
Previous Weekly Low	0.7134
Previous Monthly High	0.7228
Previous Monthly Low	0.6876
Daily Fibonacci 38.2%	0.7168
Daily Fibonacci 61.8%	0.7186
Daily Pivot Point S1	0.7127
Daily Pivot Point S2	0.7094
Daily Pivot Point S3	0.7049
Daily Pivot Point R1	0.7205
Daily Pivot Point R2	0.7249
Daily Pivot Point R3	0.7282

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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