AUD/USD: Bulls battle monthly resistance around 0.7250 amid upbeat sentiment


  • AUD/USD seesaws near the highest level in December, bulls seem to have run out of steam.
  • Market’s mood remains brighter as Omicron linked updates are positive.
  • Strong US data favored yields but stocks stayed firmer.
  • No major data, holiday season to restrict momentum.

AUD/USD prices have likely switched to the Christmas mood in advance, after refreshing the monthly high with 0.7253. That said, the Aussie pair seesaws around an upward sloping trend line from November 30 while taking rounds to 0.7250 during early Friday morning in Asia.

Positive updates concerning the milder fears from the South African covid variant, dubbed as Omicron, join upbeat signs of medical cure to the stated virus variant to favor the risk appetite. Adding to the firmer sentiment are the hopes of US stimulus, despite short-term bleak at the White House.

After approving Pfizer’s pill to battle the Omicron on Wednesday, the US Food and Drug Administration (FDA) also approved Merck's Covid-19 pill on Thursday. Earlier in the week, US Military also conveyed news of developing a single cure for covid and all variants. Also on the positive side were the studies showing Omicron has lesser scope hospitalization.

It should be noted, however, that French cancellation of orders for Merck’s pill, citing notably lesser effect than promoted, joins a steady rise in Omicron cases to challenge the market optimism.

On a different page, US President Joe Biden and House Speaker Nancy Pelosi remain hopeful of getting the Build Back Better (BBB) plan through the House even as Senator Joe Manchin opposes the bill. As per the latest news from CNN, “Sen. Joe Manchin effectively put an end to negotiations over the current version of the Build Back Better Act, in part over concerns that some provisions might exacerbate inflation. But many economists believe its effect on inflation would be marginal.”

Macroeconomics had little success in directing short-term AUD/USD moves. That said, firmer prints of US Durable Goods Orders and PCE Price Index for November couldn’t reverse the previous run-up of equities and riskier assets despite fuelling the US Treasury yields to a two-week high of 1.50% after the release. At home, Private Sector Credit grew more-than-prior in November.

Looking forward, an early close in Aussie markets and an off in the US, coupled with the light calendar and holiday mood, may restrict the AUD/USD pair’s moves. However, any surprises over Omicron covid variant or US stimulus, not to forget those from China, still can move the pair.

Technical analysis

Although a clear upside break of 20-DMA and bullish MACD signals favor AUD/USD bulls, an upward sloping trend line from November 30, around 0.7250, challenges the immediate advances.

Alternatively, pullback moves may initially aim for the 0.7200 round figure before challenging September’s low near 0.7170.

Additional important levels

Overview
Today last price 0.7242
Today Daily Change 0.0022
Today Daily Change % 0.30%
Today daily open 0.722
 
Trends
Daily SMA20 0.7131
Daily SMA50 0.7288
Daily SMA100 0.7297
Daily SMA200 0.746
 
Levels
Previous Daily High 0.7221
Previous Daily Low 0.712
Previous Weekly High 0.7225
Previous Weekly Low 0.709
Previous Monthly High 0.7537
Previous Monthly Low 0.7063
Daily Fibonacci 38.2% 0.7182
Daily Fibonacci 61.8% 0.7158
Daily Pivot Point S1 0.7153
Daily Pivot Point S2 0.7085
Daily Pivot Point S3 0.7051
Daily Pivot Point R1 0.7254
Daily Pivot Point R2 0.7288
Daily Pivot Point R3 0.7356

 

 

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

EUR/USD stays near 1.0400 in thin holiday trading

EUR/USD stays near 1.0400 in thin holiday trading

EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.

EUR/USD News
GBP/USD struggles to find direction, holds steady near 1.2550

GBP/USD struggles to find direction, holds steady near 1.2550

GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.

GBP/USD News
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook

Gold holds above $2,600, bulls non-committed on hawkish Fed outlook

Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.

Gold News
IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.

Read more
2025 outlook: What is next for developed economies and currencies?

2025 outlook: What is next for developed economies and currencies?

As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.

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