The AUD/USD pair ran through some fresh offers and has now surrendered majority of its early gains to session tops near 0.7575 level.
The pair failed to build on early up-move amid weaker tone surrounding commodity space, led by the ongoing slump in oil prices. Adding to this, the prevalent cautious environment was also seen boosting the US Dollar's safe-haven appeal against its Australian counterpart.
However, continuous fall in oil prices has been fueling concerns over slowing inflationary pressure and raised skepticism over the prospects for additional Fed rate-hike move this year. Hence, a mildly softer tone around the US Treasury bond yields was seen lending some support to higher-yielding currencies - like the Aussie, and helped the pair to hold above weekly lows touched during Asian session on Thursday.
• Oil slide takes it to a level that matters for EM FX - Goldman Sachs
With the broader market risk sentiment and the US bond yield dynamics driving the pair through Asian session, traders now look forward to the release of weekly jobless claims data in order to grab some short-term trading opportunities.
Also in focus would be the Federal Reserve Governor Jerome Powell's testimony before the US Senate Committee on Banking, which might influence Fed rate-hike expectations and also provide some impetus to the major.
Technical levels to watch
Currently trading around 0.7555 region, a follow through retracement is likely to find support at the very important 200-day SMA near 0.7530 region, below which the pair is likely to accelerate the slide back towards the key 0.75 psychological mark.
On the upside, momentum above session peak resistance near 0.7575 level could get extended towards the 0.7600 handle before the pair eventually aims back towards retesting multi-month highs resistance near 0.7630-35 region.
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.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6750 amid cautious mood ahead of Fed meeting
AUD/USD consolidates the overnight strong gains around 0.6750, as traders turn cautious ahead of a two-day FOMC meeting starting this Tuesday. Heading into the central bank event risk, the US Dollar languishes near the 2024 low amid bets for an oversized rate cut by the Fed.
USD/JPY stays defensive near 140.50 on Fed-BoE policy divergence
USD/JPY stays on the back foot at around 140.50 in the Asian session on Tuesday. The Japanese Yen remains supported amid hawkish BoJ expectations while the US Dollar bears the brunt of increased odds of an outsized Fed rate cut this week. US Retail Sales data is awaited.
Gold price consolidates near all-time peak, looks to Fed before the next leg up
Gold price is seen oscillating in a narrow trading band during the Asian session on Tuesday and consolidating its recent gains to a fresh all-time peak, around the $2,589-2,590 region touched the previous day.
Bitcoin approaches its $56,000 support level
Bitcoin is approaching a crucial daily support level of $56,000, hinting at a possible recovery. Ethereum faced rejection from the resistance level, suggesting a downward trend with weak momentum. In contrast, Ripple has bounced above the 100-day EMA, indicating a continued upward trend.
Five Fundamentals for the week: Fed overtowers pivotal week for Gold, stocks and the US Dollar Premium
The Fed's first rate cut stands out as economic uncertainty mounts. US Retail Sales and Jobless Claims are of high interest. Rate decisions by central banks in the UK and Japan are also pivotal.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.