AUD/USD flirts with daily peak amid softer USD, remains below mid-0.6600s post-RBA's Lowe


  • AUD/USD attracts some buyers on Tuesday amid subdued USD price action.
  • China’s COVID-19 woes, hawkish Fed expectations could limit the USD losses.
  • RBA Governor Lowe's comments fail to impress bulls or provide any impetus.

The AUD/USD pair regains some positive traction on Tuesday and recovers a part of the previous day's slide to over a one-week low. The pair maintains its bid tone through the first half of the European session and is currently placed near the daily peak, around the 0.6630-0.6635 region.

The US Dollar stalls its recent strong recovery move from the lowest level since August 12 and edges lower on Tuesday, which, in turn, is seen offering some support to the AUD/USD pair. The fundamental backdrop, however, still seems tilted in favour of the USD bulls. Hence, any subsequent move up might still be seen as an opportunity to initiate fresh bearish positioning around the major and runs the risk of fizzling out rather quickly.

The market sentiment remains fragile amid worries about economic headwinds stemming from a new COVID-19 outbreak in China and the imposition of fresh lockdowns in several cities. Apart from this, fears of a further escalation in the Russia-Ukraine conflict take its toll on the global risk sentiment. This is evident from a softer tone around the equity markets, which should act as a tailwind for the safe-haven buck and cap the risk-sensitive Aussie.

Furthermore, hawkish signals by Fed officials suggest that the US central bank is far from pausing its rate-hiking cycle, which should further lend support to the USD. Meanwhile, Reserve Bank of Australia (RBA) Governor Philip Lowe said on Tuesday that the central bank could return to 50 bps moves or keep rates unchanged for a time. This, along with the worsening COVID-19 situation in China, validates the bearish outlook for the AUD/USD pair.

Market participants now look forward to the release of the Richmond Manufacturing Index from the US. Apart from this, traders will take cues from a scheduled speech by Cleveland Fed President Loretta Mester. This, along with the broader market risk sentiment, will influence the USD price dynamics and allow traders to grab short-term opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6628
Today Daily Change 0.0024
Today Daily Change % 0.36
Today daily open 0.6604
 
Trends
Daily SMA20 0.6528
Daily SMA50 0.6489
Daily SMA100 0.6693
Daily SMA200 0.6945
 
Levels
Previous Daily High 0.6684
Previous Daily Low 0.6585
Previous Weekly High 0.6798
Previous Weekly Low 0.6634
Previous Monthly High 0.6548
Previous Monthly Low 0.617
Daily Fibonacci 38.2% 0.6623
Daily Fibonacci 61.8% 0.6646
Daily Pivot Point S1 0.6564
Daily Pivot Point S2 0.6525
Daily Pivot Point S3 0.6465
Daily Pivot Point R1 0.6664
Daily Pivot Point R2 0.6724
Daily Pivot Point R3 0.6764

 

 

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 trades sideways below 1.0450 amid quiet markets

EUR/USD trades sideways below 1.0450 amid quiet markets

EUR/USD defends gains below 1.0450 in European trading on Monday. Thin trading heading into the Xmas holiday and a modest US Dollar rebound leaves the pair in a familiar range. Meanwhile, ECB President Lagarde's comments fail to impress the Euro. 

EUR/USD News
GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD trades on the defensive below 1.2600 in the European session on Monday. The pair holds lower ground following the downward revision to the third-quarter UK GDP data, which weighs negatively on the Pound Sterling amid a broad US Dollar uptick. 

GBP/USD News
Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price attracts some follow-through buying at the start of a new week and looks to build on its recovery from a one-month low touched last Thursday. Geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, along with trade war fears, turn out to be key factors benefiting the safe-haven precious metal. 

Gold News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025. 

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 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