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

AUD/USD

Overview
Today last price 0.7904
Today Daily Change -0.0009
Today Daily Change % -0.11
Today daily open 0.7913
 
Trends
Daily SMA20 0.7718
Daily SMA50 0.7694
Daily SMA100 0.7473
Daily SMA200 0.726
 
Levels
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

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: ECB and US Treasury yields to make it or break it

The EUR/USD pair fell to a fresh 2021 low at 1.1892 this week, ending with a handful of pips above this level. The dollar soared across the board following comments from the head of US Federal Reserve Jerome Powell.

EUR/USD News

GBP/USD: Dollar bulls taking over

The British Pound was among the best performers against the greenback, surging above the 1.4000 level for the first time this week. Soaring US Treasury yields after Powell’s speech sent the dollar skyrocketing. GBP/USD struggling around 1.3900 and at risk of falling further.

GBP/USD News

Gold still eyes June 2020 lows at $1670 after weekly closing below $1700

Weekly closing below $1700 keeps the XAU/USD sellers hopeful. A bounce towards 50-SMA on 4H cannot be ruled out in the near-term. RSI stays bearish while gold holds within a potential falling wedge.

Gold News

Ethereum price primed for a swift recovery as the network prepares for a major update in July

Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures