- AUD/USD oscillated in a narrow trading band through the early part of the European session.
- Hawkish Fed expectations, rising US bond yields underpinned the USD and capped the upside.
- Investors, however, seemed reluctant to place aggressive bets ahead of the key US CPI report.
The AUD/USD pair seesawed between tepid gains/minor losses through the early part of the European session and was last seen trading around mid-0.7100s.
Following the overnight pullback from a nearly two-week high, the AUD/USD pair witnessed a range-bound price action on Friday as investors await the US consumer inflation figures for a fresh impetus. The US CPI report is due for release later during the early North American session and will be looked upon for fresh clues about the Fed's near-term policy outlook.
The markets have been pricing in the prospects for an early policy tightening by the Fed amid worries about the persistent rise in inflationary pressures. A stronger print will reaffirm the hawkish Fed expectations, which, in turn, would result in a stronger US dollar and suggests that the AUD/USD pair's recent recovery from the YTD low has run out of steam.
In the meantime, the USD drew some support from a fresh leg up in the US Treasury bond yields. Apart from this, a generally weaker tone around the equity markets further benefitted the greenback's safe-haven status. Heading into the key data risk, the combination of factors might continue to cap any meaningful upside for the perceived riskier aussie.
Technical levels to watch
|Today last price||0.7148|
|Today Daily Change||-0.0002|
|Today Daily Change %||-0.03|
|Today daily open||0.715|
|Previous Daily High||0.7188|
|Previous Daily Low||0.7134|
|Previous Weekly High||0.7174|
|Previous Weekly Low||0.6993|
|Previous Monthly High||0.7537|
|Previous Monthly Low||0.7063|
|Daily Fibonacci 38.2%||0.7155|
|Daily Fibonacci 61.8%||0.7168|
|Daily Pivot Point S1||0.7127|
|Daily Pivot Point S2||0.7104|
|Daily Pivot Point S3||0.7073|
|Daily Pivot Point R1||0.718|
|Daily Pivot Point R2||0.7211|
|Daily Pivot Point R3||0.7234|
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