AUD/USD struggles to stage a convincing rebound, trades near 0.7500

AUD/USD stays in the negative territory following Monday's recovery.
US Dollar Index edges higher ahead of FOMC Chairman Powell's testimony.
Commonwealth Bank PMI data will be featured in Australian economic docket.

Eren Sengezer FXStreet

The AUD/USD pair snapped a four-day losing streak and registered modest gains on Monday but lost its traction on Tuesday. As of writing, the pair was down 0.4% on a daily basis at 0.7505.

DXY clings to daily gains

The broad-based USD weakness allowed AUD/USD to erase a small portion of last week's losses on Monday. The US Dollar Index (DXY), which gained 2% on the back of the FOMC's hawkish shift, lost 0.5% at the start of the week but managed to regather its bullish momentum.

Ahead of FOMC Chairman Jerome Powell's testimony before the House Select Subcommittee on the Coronavirus Crisis at 1800 GMT, the DXY is up 0.3% on the day at 92.11. Investors will keep a close eye on Powell's remarks regarding the inflation outlook and the timing of tapering.

May Existing Home Sales and the Federal Reserve Bank of Richmond's Manufacturing Index for June will be looked upon for fresh catalysts as well. On the other hand, the Commonwealth Bank will release the preliminary Manufacturing and Services PMI reports for Australia in the early trading hours of the Asian session on Wednesday.

In the meantime, Wall Street's main indexes remain on track to open modestly higher on Tuesday, suggesting that the greenback could have a tough time gathering additional strength during the American session.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7507
Today Daily Change	-0.0026
Today Daily Change %	-0.35
Today daily open	0.7533

Trends
Daily SMA20	0.7692
Daily SMA50	0.773
Daily SMA100	0.7722
Daily SMA200	0.7556

Levels
Previous Daily High	0.7547
Previous Daily Low	0.7477
Previous Weekly High	0.7727
Previous Weekly Low	0.7477
Previous Monthly High	0.7892
Previous Monthly Low	0.7674
Daily Fibonacci 38.2%	0.752
Daily Fibonacci 61.8%	0.7504
Daily Pivot Point S1	0.7491
Daily Pivot Point S2	0.745
Daily Pivot Point S3	0.7422
Daily Pivot Point R1	0.7561
Daily Pivot Point R2	0.7589
Daily Pivot Point R3	0.763

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.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.