AUD/USD sticks to intraday gains near 0.7275-80 region, upside seems limited

  • AUD/USD gained positive traction on Tuesday and moved further away from multi-week lows.
  • The risk-on impulse weighed on the safe-haven USD and benefitted the perceived riskier aussie.
  • Hawkish Fed expectations, rebounding US bond yields should limit the USD slide and cap gains.

The AUD/USD pair maintained its bid tone through the early European session and was last seen trading near two-day tops, around the 0.7275-80 region.

The pair built on the previous day's modest bounce from the 0.7220 region, or multi-week lows and gained some positive traction through the first half of the trading action on Tuesday. The risk-on impulse in the markets weighed on the safe-haven US dollar and was seen as a key factor that benefitted the perceived riskier aussie.

Meanwhile, bulls seemed rather unaffected and largely shrugged off dovish sounding RBA meeting minutes, reiterating that conditions for a rate hike will not be met at least until 2024. The Australian central bank also raised concerns that the spread of the Delta variant could slow the recovery, although expects strong growth to resume next year.

That said, fears about the spillover risk from China Evergrande's troubles should keep a lid on the optimism. Apart from this, expectations for an imminent Fed taper announcement and a goodish pickup in the US Treasury bond yields should act as a tailwind for the greenback. This might further collaborate to cap gains for the AUD/USD pair.

Investors might also refrain from placing aggressive bets, rather prefer to wait for a fresh catalyst from the outcome of a two-day FOMC meeting starting this Tuesday. Hence, it will be prudent to wait for some follow-through buying before confirming that the recent pullback from the highest level since mid-July has run its course.

The Fed is scheduled to announce its policy decision on Wednesday and investors will look for clues about the likely timing of the tapering plan. Apart from this, the latest economic projections/dot plot will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus to the AUD/USD pair.

Technical levels to watch


Today last price 0.727
Today Daily Change 0.0018
Today Daily Change % 0.25
Today daily open 0.7252
Daily SMA20 0.7334
Daily SMA50 0.7341
Daily SMA100 0.7502
Daily SMA200 0.7604
Previous Daily High 0.7269
Previous Daily Low 0.7219
Previous Weekly High 0.7377
Previous Weekly Low 0.7262
Previous Monthly High 0.7427
Previous Monthly Low 0.7106
Daily Fibonacci 38.2% 0.7238
Daily Fibonacci 61.8% 0.725
Daily Pivot Point S1 0.7224
Daily Pivot Point S2 0.7197
Daily Pivot Point S3 0.7174
Daily Pivot Point R1 0.7274
Daily Pivot Point R2 0.7297
Daily Pivot Point R3 0.7324



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Sellers attack 1.1620-15 key support

EUR/USD holds lower grounds inside fortnight-old rising channel formation. The pair fades bounce off 1.1620 amid a quiet start to Friday’s Asian session. Convergence of Fibonacci retracements, channel’s support restricts immediate downside.


GBP/USD breaks below 1.3800 reach fresh monthly lows at 1.3776

The British pound extends its slide below 1.3800 during the New York session, losses 0.26%, trading at 1.3788 at the time of writing. As portrayed by US stocks indices rising between 0.19% and 0.58%, the market mood has slightly improved, except for the Dow Jones Industrial, dropping 0.12%. 


Gold steady around $1,780.00 capped by high US T-bond yields

On Thursday, gold seesawed around $1,767-88, subject to the movement in US T-bond yields. During the New York session, the market sentiment improved as the Wall Street close approached, ending with a positive mood.

Gold News

Nothing will stop the crypto bull run

Bitcoin hit new all-time highs and looks to set a new target of $100K as next significant number. ETH broke a bearish top line and could hit new all-time highs by the end of this week. XRP sees both bears and bulls waiting on the sideline. 

Read more

Bitcoin soars, can the US economy be far behind? Premium

Bitcoin has had a most optimistic month, rocketing almost 60% higher in three weeks. The US economy is beset with labor shortages, inflation, falling growth and an inability to conclude the pandemic. Join our analysts for a look into two market visions.

Read more