AUD/USD steadies around 0.7900 as investors await Powell's testimony

  • AUD/USD is struggling to find direction on Tuesday.
  • US Dollar Index clings to modest recovery gains.
  • Market mood remains sour ahead of FOMC Chairman Powell's testimony.

The AUD/USD pair touched its highest level in nearly three years at 0.7983 on Tuesday but failed to preserve its bullish momentum. As of writing, the pair was down 0.15% on the day at 0.7903.

Safe-haven flows help USD limit its losses

The USD's market valuation continues to drive AUD/USD's movements in the absence of significant fundamental drivers. On Monday, the US Dollar Index (DXY) lost 0.4% and closed in the negative territory for the third straight day. The negative shift witnessed in risk sentiment on Tuesday helps the greenback find some demand and the DXY was last seen rising 0.16% on the day at 90.15. 

Mirroring the sour market mood, the S&P 500 Futures are down 0.4%, suggesting that the USD could preserve its strength in the second half of the day with Wall Street's main indexes edging lower after the opening bell.

Meanwhile, investors are waiting for FOMC Chairman Jerome Powell to deliver his remarks at his semi-annual testimony before the Senate Banking Committee. Powell is not expected to change his tone regarding the policy outlook and likely to reiterate that the Fed will preserve the highly accommodative stance. 

Additionally, the Conference Board's Consumer Confidence report for February will be looked upon for fresh impetus later in the session.

On Wednesday, the fourth-quarter Wage Price Index will be featured in the Australian economic docket.

Technical levels to watch for


Today last price 0.7904
Today Daily Change -0.0009
Today Daily Change % -0.11
Today daily open 0.7913
Daily SMA20 0.7718
Daily SMA50 0.7694
Daily SMA100 0.7473
Daily SMA200 0.726
Previous Daily High 0.793
Previous Daily Low 0.7854
Previous Weekly High 0.7878
Previous Weekly Low 0.7724
Previous Monthly High 0.782
Previous Monthly Low 0.7592
Daily Fibonacci 38.2% 0.7901
Daily Fibonacci 61.8% 0.7883
Daily Pivot Point S1 0.7868
Daily Pivot Point S2 0.7824
Daily Pivot Point S3 0.7793
Daily Pivot Point R1 0.7944
Daily Pivot Point R2 0.7975
Daily Pivot Point R3 0.8019



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