AUD/USD surrenders early gains to levels beyond 0.7100 handle

• A modest pickup in the USD demand kept a lid on early attempted rebound.
• Positive copper prices also failed to provide any meaningful positive impetus.

The AUD/USD pair surrendered early modest gains to levels beyond the 0.7100 handle and is currently placed at the lower end of its daily trading range.

The pair built on previous session's late rebound from 1-1/2 week lows, with a combination of positive factors helping gains traction for the second consecutive session on Wednesday.

Against the backdrop of a modest overnight rebound in the US equities, a turnaround in Chinese markets provided an additional boost to the China-proxy Australian Dollar and lifted the pair to an intraday high level of 0.7106.

The uptick was further supported by the prevalent positive tone around copper prices, which tend to underpin the commodity-linked Australian Dollar, though some renewed pickup in the US Dollar demand capped gains.

Despite the ongoing slide in the US Treasury bond yields, the greenback managed to hold ground and was seen as one of the key factors keeping a lid on any strong follow-through movement, at least for the time being.

In absence of any major market moving economic releases, the USD price dynamics and broader market risk sentiment might continue to act as key determinants of the pair's momentum through Wednesday's trading session.

Technical levels to watch

The 0.7050-40 region might continue to protect the immediate downside, below which the pair is likely to accelerate the slide further towards testing the key 0.70 psychological mark. On the flip side, the 0.7100-0.7110 region now seems to act as an immediate resistance and is followed by the 0.7150-60 heavy supply zone, which if cleared might trigger a near-term short-covering bounce.

Share: Feed news

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.