There has been a resurgence in AUDUSD at 0.68008 as a result of a decline in the USD Index. This recovery has been supported after hitting the 0.6800 level.
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- AUD/USD has shown a recovery move from 0.6800 supported by a sell-off in the USD Index.
The pair currently trades last at 0.68008.
The previous day high was 0.6886 while the previous day low was 0.6834. The daily 38.2% Fib levels comes at 0.6854, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6866, expected to provide resistance.
The AUD/USD pair has found decent strength near the round-level support of 0.6800 in the London session. The Aussie asset has gained attention as the US Dollar Index (DXY) has witnessed an intense sell-off after facing barricades around 102.60.
S&P500 futures have recovered some losses, portraying an increment in the risk appetite of the market participants. On a broader note, the risk profile will remain precautionary as the US markets will open after an extended weekend.
The USD Index has faced immense selling pressure as investors are hoping that interest rates by the Federal Reserve (Fed) won’t move beyond 5.25-5.50%. As per the CME Fedwatch tool, more than 49% chances are in favor of only one small interest rate hike by the year-end. The context of only one interest rate hike this year is being supported by easing labor market conditions, and lower gasoline prices that have softened consumer and producer price index.
Going forward, the testimony from Fed chair Jerome Powell will be keenly watched.
Meanwhile, the Australian Dollar has gained traction as the People’s Bank of China (PBoC) has announced rate cuts. China’s central bank cuts its benchmark Loan Prime Rates (LPRs) by 10 basis points (bps) due to which the one-year LPR was reduced from 3.65% to 3.55% while the five-year LPR was trimmed to 4.20%.
It is worth noting that Australia is the leading trading partner of China and more monetary stimulus by the PBoC has strengthened the Australian Dollar.
Apart from that, the release of the Reserve Bank of Australia (RBA) minutes also propelled action in the Australian Dollar. Analysts at ANZ Bank cited the minutes of the RBA describes the rate rise decision was again described as “finely balanced”. Unlike previous minutes, there was no talk of whether further increases were needed. Ultimately the minutes had something for everyone – with talk of upside risks to inflation since May, but also optimism on productivity and unit labor costs from here. The further added increase in July is the most likely outcome given May’s very strong labor market data, which came out after the meeting.
Technical Levels: Supports and Resistances
AUDUSD currently trading at 0.6805 at the time of writing. Pair opened at 0.6851 and is trading with a change of -0.67 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6805 |
| 1 | Today Daily Change | -0.0046 |
| 2 | Today Daily Change % | -0.6700 |
| 3 | Today daily open | 0.6851 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6662, 50 SMA 0.6676, 100 SMA @ 0.6726 and 200 SMA @ 0.6692.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6662 |
| 1 | Daily SMA50 | 0.6676 |
| 2 | Daily SMA100 | 0.6726 |
| 3 | Daily SMA200 | 0.6692 |
The previous day high was 0.6886 while the previous day low was 0.6834. The daily 38.2% Fib levels comes at 0.6854, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6866, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.6827, 0.6804, 0.6775
- Pivot resistance is noted at 0.688, 0.691, 0.6933
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6886 |
| Previous Daily Low | 0.6834 |
| Previous Weekly High | 0.6900 |
| Previous Weekly Low | 0.6732 |
| Previous Monthly High | 0.6818 |
| Previous Monthly Low | 0.6458 |
| Daily Fibonacci 38.2% | 0.6854 |
| Daily Fibonacci 61.8% | 0.6866 |
| Daily Pivot Point S1 | 0.6827 |
| Daily Pivot Point S2 | 0.6804 |
| Daily Pivot Point S3 | 0.6775 |
| Daily Pivot Point R1 | 0.6880 |
| Daily Pivot Point R2 | 0.6910 |
| Daily Pivot Point R3 | 0.6933 |
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