AUD/USD tracks commodities lower, eyes 0.7350

Aussie sold-off into weaker commodities’ prices and USD rebound.
Australian and Chinese data failed to keep the bears at bay.

Dhwani Mehta FXStreet

The AUD/USD pair is seen accelerating its retreat from three-day highs at 0.7424, as the bears fought back control amid a broadly firmer US dollar and commodities’ sell-off.

AUD/USD: Light trading to extend on US holiday

The ongoing corrective rally in the Aussie lost legs once again near 0.7420 region, as the USD bulls jumped back on the bids, with markets preferring to hold the US currency amid escalating trade war tensions and ahead of Thursday’s FOMC June meeting minutes.

The latest leg down in the major can be also attributed the renewed weakness in oil and copper prices, which dents the sentiment around the resource-linked AUD. At the time of writing, AUD/USD flirts with daily lows near 0.7480 region, down -0.05% on the day.

Earlier today, the Aussie rallied to regain the 0.74 handle following the releases of upbeat Australian retail sales and Chinese services PMI data. Also, a firmer Yuan versus its US counterpart helped the upside in the OZ currency.

AUD/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet, “technically, the pair presents a neutral stance, having been rejected from a bearish 100 SMA and now a handful of pips above a directionless 20 SMA, while the Momentum indicator continues hovering around its 100 level and the RSI turned south, currently at 52. The risk of a downward continuation will increase on a break below 0.7345, while only beyond 0.7440 bulls will take the lead. Support levels: 0.7345 0.7310 0.7275. Resistance levels: 0.7410 0.7440 0.7480.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.