|

AUD/USD buyers stepped around weekly lows, dragging the pair towards 0.6970s on weak USD

  • The Australian Dollar got bolstered by China’s upbeat GDP and improvement in Australia’s consumer sentiment.
  • New York Fed Empire State Manufacturing Index plunged as business conditions deteriorated, augmenting speculations for a Fed pivot.
  • AUD/USD traders are eyeing Fed speaking, US PPI, Retail Sales, and Australia’s employment data.

The Australian Dollar (AUD) is trimming some of its Monday’s losses and rising due to an offered US Dollar (USD) across the board, despite a dampened market mood surrounding Wall Street. US corporate earnings would likely continue to drive the market sentiment amidst the lack of tier 1 data. At the time of writing, the AUD/USD is trading at 0.6974.

AUD/USD climbs but fails to crack 0.7000

Wall Street continues to lose traction as sentiment turns sour. US data released ahead of the US cash market equities open showed that Manufacturing activity in New York plunged to its lowest in January, as reported by the New York Federal Reserve (Fed). Delving into the report, business activity contracted sharply, with the index falling 22 points to -32.9. The report showed that new orders and shipments declined substantially, while delivery times were unchanged and inventories aimed higher.

The softer-than-expected data spurred a jump in the AUD/USD pair, reaching a new daily high of 0.6993, before retracing some of its gains. Meanwhile, the US Dollar Index, which tracks the buck’s value against a basket of six currencies, retraces 0.11%, down at 102.448, undermined by falling US Treasury bond yields.

On the Australian side, upbeat data from China, mainly the Gross Domestic Product (GDP) beating expectations of 1.6%, at 2.9% for Q4, bolstered the Aussie Dollar (AUD). Regarding the annual based data, China’s GDP came at 3%, well below the Communist Party’s 5% projection, and trailed 2021 by 8.1%.

Even though China’s data for the entire year disappointed, its reopening is being cheered by market investors, as the Hang Seng has risen almost 14% since the beginning of 2023. Further, the release of Australian consumer sentiment improved for the second consecutive month at 5.0%, vs. 3.0% in December.

Ahead of the week, the US economic docket will feature the New York Fed President John Williams, crossing newswires Tuesday. On Wednesday, the calendar will feature Retail Sales, prices paid by producers (PPI), and further Fed speaking.

AUD/USD Key Technical Levels

AUD/USD

Overview
Today last price0.6979
Today Daily Change0.0029
Today Daily Change %0.42
Today daily open0.695
 
Trends
Daily SMA200.6807
Daily SMA500.6749
Daily SMA1000.6636
Daily SMA2000.6829
 
Levels
Previous Daily High0.7019
Previous Daily Low0.6941
Previous Weekly High0.6994
Previous Weekly Low0.686
Previous Monthly High0.6893
Previous Monthly Low0.6629
Daily Fibonacci 38.2%0.6971
Daily Fibonacci 61.8%0.6989
Daily Pivot Point S10.6921
Daily Pivot Point S20.6892
Daily Pivot Point S30.6843
Daily Pivot Point R10.6999
Daily Pivot Point R20.7048
Daily Pivot Point R30.7077

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

EUR/USD stabilizes near 1.1800 as markets focus on geopolitics

EUR/USD stays defensive around 1.1800 in the second half of the day on Thursday. The US Dollar stabilizes, following the recent decline led by tariff uncertainty, capping the pair's upside. All eyes now remain on the US-Iran nuclear talks after ECB President Lagarde's testimony failed to impress Euro bulls. 

GBP/USD holds above 1.3500, struggles to gain traction

GBP/USD rebound from session lows but stays below 1.3550 on Thursday. The cautious market stance helps the US Dollar stay resilient against its rivals and makes it difficult for the pair gather recovery momentum. Investors await headlines that will come out of the US-Iran nuclear talks.

Gold clings to small gains near $5,200 ahead of US-Iran talks

Gold trades marginally higher on the day above $5,150 on Thursday as investors refrain from taking large positions. The US and Iran will hold the next round of nuclear talks in Geneva on Thursday, outcome of which could have significant implications for risk perception.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty. 

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.