AUD/USD off multi-month highs, below 0.7400 amid cautious optimism


  • AUD/USD drops in tandem with S&P 500 futures.
  • DXY stalls in sell-off in early Europe, awaits fresh impetus.
  • Potential month-end repositioning in the aussie ahead of RBA.

AUD/USD extends pullback from the highest levels since September reached at 0.7408 earlier in the Asian session, as the US dollar pauses its declines across the board.

The souring risk sentiment could be associated with the rebound in the US dollar while the latest drop in the S&P 500 futures also exerts downside pressure on the aussie. Markets continue to assess the economic recovery expectations induced by the coronavirus vaccine progress.

Meanwhile, escalating Australian-Sino trade tensions also limit the upside in the aussie. Australian Trade Minister Simon Birmingham said Monday, they are considering a World Trade Organization (WTO) appeal against China’s decision to impose tariffs on barley imports from the OZ nation.

Investors also turn cautious ahead of the Reserve Bank of Australia's (RBA) Governor Phillip Lowe’s speech and monetary policy decision due on Tuesday. Also, of note remains that the Australian Q3 GDP report and US NFP data due later this week.

However, the AUD buyers remain hopeful amid upbeat official Chinese Manufacturing and Services PMIs, which suggested that economic recovery in the world’s second-biggest economy is gaining traction. Note that China is Australia’s top export destination.

AUD/USD technical levels

“Unless declining back below 0.7345/40 area, comprising highs marked between mid-September and November 17, AUD/USD bulls can keep July 2018 top surrounding 0.7485 on the radar,” Anil Panchal, FXStreet’s Analyst explained.

AUD/USD additional levels

AUD/USD

Overview
Today last price 0.7379
Today Daily Change -0.0004
Today Daily Change % -0.05
Today daily open 0.7384
 
Trends
Daily SMA20 0.7277
Daily SMA50 0.7183
Daily SMA100 0.7187
Daily SMA200 0.6857
 
Levels
Previous Daily High 0.7399
Previous Daily Low 0.7352
Previous Weekly High 0.7399
Previous Weekly Low 0.7264
Previous Monthly High 0.7244
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7381
Daily Fibonacci 61.8% 0.737
Daily Pivot Point S1 0.7357
Daily Pivot Point S2 0.7331
Daily Pivot Point S3 0.731
Daily Pivot Point R1 0.7405
Daily Pivot Point R2 0.7425
Daily Pivot Point R3 0.7452

 

 

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