Some purchasers are attracted to the AUDUSD currency pair at a rate of 0.66272 on Friday, as a result of a weaker US dollar, providing assistance to the pair.
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- AUD/USD attracts some buyers on Friday and draws support from a softer USD.
The pair currently trades last at 0.66272.
The previous day high was 0.6688 while the previous day low was 0.6599. The daily 38.2% Fib levels comes at 0.6633, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6654, expected to provide resistance.
The AUD/USD pair builds on the previous day’s modest bounce from sub-0.6600 levels, or a one-week trough and gains some positive traction on Friday. Spot prices, however, struggle to capitalize on the move and remain below the 0.6650 level through the early European session.
The uncertainty over the Federal Reserve’s (Fed) rate-hike path prompts some US Dollar (USD) selling for the second successive day, which, in turn, is seen as a key factor lending support to the AUD/USD pair. The minutes from the June FOMC meeting released on Wednesday revealed that almost all members supported resuming rate hikes as inflation remains unacceptably high. Furthermore, Thursday’s upbeat US ADP report and the ISM Services PMI reaffirmed bets for a 25 bps lift-off at the July FOMC meeting. That said, the Prices Paid sub-component of the ISM survey fell to a more than two-year low, suggesting that the closely watched services inflation is gradually slowing and fueling speculations that the Fed will eventually soften its hawkish stance, sooner rather than latter.
The Fed, however, is still expected to continue with its policy tightening cycle, which keeps the the US Treasury bond yields and helps limit the downside for the USD. In fact, the yield on the rate-sensitive two-year US government bond is placed near its highest since June 2007, while the benchmark 10-year US Treasury yield holds steady above the 4.0% threshold. This, along with the prevalent risk-off environment acts as a tailwind for the safe-haven Greenback and keeps a lid on any meaningful upside for the AUD/USD pair. The market sentiment remains fragile amid worries about a global economic downturn and the worsening US-China relations. Traders also seem reluctant to place aggressive bets and prefer to wait for the release of the US monthly employment details.
The popularly known NFP report is due later during the early North American session and will play a key role in infuencing the Fed’s near-term policy outlok. This, in turn, will drive the USD demand and provide some meaningful imptus to the AUD/USD pair. Nevertheless, spot prices, at current levels, seem poised to register modest losses for the third successive week.
Technical Levels: Supports and Resistances
AUDUSD currently trading at 0.6627 at the time of writing. Pair opened at 0.6626 and is trading with a change of 0.02 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6627 |
| 1 | Today Daily Change | 0.0001 |
| 2 | Today Daily Change % | 0.0200 |
| 3 | Today daily open | 0.6626 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6729, 50 SMA 0.6675, 100 SMA @ 0.6689 and 200 SMA @ 0.6696.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6729 |
| 1 | Daily SMA50 | 0.6675 |
| 2 | Daily SMA100 | 0.6689 |
| 3 | Daily SMA200 | 0.6696 |
The previous day high was 0.6688 while the previous day low was 0.6599. The daily 38.2% Fib levels comes at 0.6633, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6654, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.6587, 0.6549, 0.6498
- Pivot resistance is noted at 0.6676, 0.6726, 0.6765
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6688 |
| Previous Daily Low | 0.6599 |
| Previous Weekly High | 0.6721 |
| Previous Weekly Low | 0.6595 |
| Previous Monthly High | 0.6900 |
| Previous Monthly Low | 0.6484 |
| Daily Fibonacci 38.2% | 0.6633 |
| Daily Fibonacci 61.8% | 0.6654 |
| Daily Pivot Point S1 | 0.6587 |
| Daily Pivot Point S2 | 0.6549 |
| Daily Pivot Point S3 | 0.6498 |
| Daily Pivot Point R1 | 0.6676 |
| Daily Pivot Point R2 | 0.6726 |
| Daily Pivot Point R3 | 0.6765 |
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