AUDUSD climbs back closer to 0.6500 mark, lacks follow-through

AUDUSD climbs back closer to 0.6500 mark, lacks follow-through

  • AUD/USD managed to reverse an early dip to 0.6035-30 area and refreshed session tops.
  • China suspends some meat imports from Australian producers and weighed on the aussie.
  • The downside remained cushioned amid a subdued USD demand, sliding US bond yields.

The AUD/USD pair managed to recover over 60 pips from daily swing lows, albeit struggled to extend the momentum and remained below the key 0.6500 psychological mark.

The pair extended the previous session's retracement slide from the 0.6560-70 supply zone and witnessed some selling during the Asian session on Tuesday. Reports that China had suspended some meat imports from Australian producers turned out to be one of the key factors that exerted some pressure on the aussie.

Meanwhile, the recent optimism over easing lockdown restrictions was overshadowed by fears about the second wave of coronavirus infections and weighed on investors' sentiment. This was evident from a weaker tone surrounding the equity markets and further undermined demand for the perceived riskier Australian dollar.

On the other hand, the US dollar was seen consolidating its recent gains to two-week amid a fresh leg down in the US Treasury bond yields and speculations that the Fed might be forced to push interest rates below zero. This, in turn, helped limit deeper losses for the AUD/USD pair, rather attract some dip-buying at lower levels.

It, however, remains to be seen if the pair is able to capitalize on the intraday uptick or continues with its struggle to sustain above 100-day SMA pivotal point. Hence, it will be prudent to wait for some strong follow-through buying beyond the mentioned barrier before positioning for any further near-term appreciating move.

Moving ahead, investors now look forward to the release of the US consumer inflation figures. This along with scheduled speeches by FOMC members might influence the USD price dynamics and produce some meaningful trading opportunities.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6487
Today Daily Change -0.0002
Today Daily Change % -0.03
Today daily open 0.6489
 
Trends
Daily SMA20 0.6418
Daily SMA50 0.6285
Daily SMA100 0.6537
Daily SMA200 0.6673
 
Levels
Previous Daily High 0.6562
Previous Daily Low 0.6457
Previous Weekly High 0.6549
Previous Weekly Low 0.6372
Previous Monthly High 0.657
Previous Monthly Low 0.598
Daily Fibonacci 38.2% 0.6497
Daily Fibonacci 61.8% 0.6522
Daily Pivot Point S1 0.6443
Daily Pivot Point S2 0.6397
Daily Pivot Point S3 0.6338
Daily Pivot Point R1 0.6549
Daily Pivot Point R2 0.6608
Daily Pivot Point R3 0.6654

 

 



Source: FxStreet

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