AUD/USD: Bears attacking 0.6500 after pullback from seven-week top


  • AUD/USD respects the seller’s entry near the multi-day high.
  • Market sentiment dwindled amid downbeat macros, ECB’s lack of bold moves and US President Trump's attack on China.
  • Aussie PMIs can offer immediate direction, virus updates remain as the key driver.

AUD/USD extends the latest U-turn from 0.6530 to currently around 0.6510, defying the earlier pullback from 0.6490, at the start of Friday’s Asian session. While downbeat macroeconomics can be considered as a reason for the Aussie pair’s declines from the multi-day top, recently weak trading sentiment is also a catalyst for the risk barometer’s declines.

China’s Manufacturing PMIs earlier questioned the recent rally…

Not only soft prints of China’s April month official Manufacturing PMI, down to 50.8 from 51.0 expected, but Caixin Manufacturing PMI’s drop into the contraction suggesting region, to 49.4 from 50.1 prior, also were the first to check the Aussie bulls during Thursday’s Asian session.

The moves were then followed by downbeat European GDP and US Jobless Claims, Chicago Fed Manufacturing figures that spread worries of broad weakness in macroeconomics due to the coronavirus (COVID-19).

ECB’s soft landing also hurt the sentiment and so does Trump’s attack on China…

Other than the downbeat data-points, the European Central Bank’s (ECB) lack of bold moves as well as US President’s attack on China also weighs on the pair.

The ECB did soften rates for longer-term loans for banks and took measures to promote landing for special purpose loans. However, the vague performance of the ECB falls short of the economic threat and required actions as signaled by the regional central bank earlier.

US President Donald Trump continues to hold China responsible for the virus outbreak. His latest comments have direct links to the US-China trade deal that was the market’s main concern before the deadly virus erupted a few months back.

Moving on, Australia’s AiG Performance of Manufacturing Index and Commonwealth Bank Manufacturing PMI, with respective prior of 53.7 and 45.6, are likely immediate catalysts for the Aussie pair. Though, trade and virus updates are likely to have a major impact on the risk barometer’s performance.

Technical analysis

The pair’s failure to cross 100-day SMA, at 0.6566 now, seems to drag it back to mid-April top surrounding 0.6445/40. Though, bullish MACD keeps favoring the quote’s run-up towards 0.6685/90 area comprising 200-day SMA and March month high.

Additional important levels

Overview
Today last price 0.6509
Today Daily Change -47 pips
Today Daily Change % -0.72%
Today daily open 0.6556
 
Trends
Daily SMA20 0.6314
Daily SMA50 0.6303
Daily SMA100 0.657
Daily SMA200 0.6689
 
Levels
Previous Daily High 0.6558
Previous Daily Low 0.6486
Previous Weekly High 0.6406
Previous Weekly Low 0.6253
Previous Monthly High 0.6686
Previous Monthly Low 0.5509
Daily Fibonacci 38.2% 0.6531
Daily Fibonacci 61.8% 0.6514
Daily Pivot Point S1 0.6509
Daily Pivot Point S2 0.6461
Daily Pivot Point S3 0.6436
Daily Pivot Point R1 0.6581
Daily Pivot Point R2 0.6606
Daily Pivot Point R3 0.6653

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

Fed trims benchmark rate by 25 bps as expected – LIVE

Fed trims benchmark rate by 25 bps as expected – LIVE

The Federal Reserve (Fed) lowered the policy rate by 25 bps to the range of 4.5%-4.75% after the November meeting. The US Dollar ticked higher after the news. Chairman Jerome Powell's speech awaited for additional clues. 

FOLLOW US LIVE
EUR/USD retreats from 1.0800 on Fed's decision

EUR/USD retreats from 1.0800 on Fed's decision

EUR/USD retreats from around 1.0800 after the Federal Reserve announced its decision to cut the benchmark interest rate by 25 bps as widely anticipated. Eyes on Powell's speech.

EUR/USD News
GBP/USD hovers around 1.2950 after BoE, Fed

GBP/USD hovers around 1.2950 after BoE, Fed

GBP/USD trades in positive territory around 1.2950, easing from an intraday peak of 1.3008. The BoE lowered the policy rate by 25 basis points as expected but upwardly revised inflation projections. The Fed also delivered a 25 bps rate cut.

GBP/USD News
Gold nears $2,700 with Fed’s announcement

Gold nears $2,700 with Fed’s announcement

Gold recovers following Wednesday's sharp decline and trades near $2,700. Federal Reserve's decision to cut rates by 25 bps is boosting demand for safe-haven assets, such as the  US Dollar and Gold.

Gold News
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures