AUD/USD regains 0.7400 on market optimism, RBA’s Lowe, US NFP eyed

AUD/USD holds on to the recovery moves from 0.7370, edges higher of late.
Market sentiment improves on stimulus hopes, Fed’s optimism and upbeat data.
Covid woes, tapering chatters challenge bulls but Wall Street ended on positive note, US T-Bond Yields stay firmer.
RBA Governor Lowe’s testimony, China trade data and US NFP will decorate the calendar.

Anil Panchal FXStreet

AUD/USD bulls flirt with the 0.7400 threshold as Asian traders brace for the NFP day, Friday. The Aussie pair benefits from the improved market sentiment ahead of RBA Governor Phillip Lowe’s testimony and the key US data.

After a dull start to Thursday, risk appetite improved during the US session amid news that the Senators are closer to infrastructures spending bill passage and may start negotiating the budget details as the debt limit pause expired. As per Bloomberg, the US Congressional Budget Office (CBO) sees the infrastructure bill widening the budget gap by $256 billion.

Also contributing to the risk-on mood could be the Fed policymakers’ unuttered optimism that the economy remains strong despite the Delta covid variant. The consensus gains support from upbeat US Jobless Claims data.

It should be noted however that Australia posted higher covid infections since August 2020 and numbers from the US, China and Japan also challenge the upbeat mood, also the AUD/USD prices.

Amid these plays, Wall Street benchmarks closed positive for Thursday while the US 10-year Treasury yields jumped the most in 12 days to 1.22%.

Looking forward, RBA Governor is up for testimony before the House of Representatives Standing Committee on Economics and bulls will be keen to reconfirm the hawkish tilt heard earlier in the week. Following that, RBA Monetary Policy Statement, China trade numbers and US employment data will be important to watch.

Read: US July Nonfarm Payrolls Preview: Analyzing major pairs' reaction to NFP surprises

Technical analysis

AUD/USD bulls battle 0.7400–0.7410 resistance area comprising level marked since early July. However, the Aussie pair’s ability to close beyond 21-day SMA amid bullish MACD signals do favor the buyers to aim for June’s low near 0.7480 during further advances.

Additional important levels

Overview
Today last price	0.7403
Today Daily Change	0.0022
Today Daily Change %	0.30%
Today daily open	0.7381

Trends
Daily SMA20	0.7396
Daily SMA50	0.7533
Daily SMA100	0.7624
Daily SMA200	0.7603

Levels
Previous Daily High	0.7427
Previous Daily Low	0.7369
Previous Weekly High	0.7415
Previous Weekly Low	0.7317
Previous Monthly High	0.7599
Previous Monthly Low	0.7288
Daily Fibonacci 38.2%	0.7391
Daily Fibonacci 61.8%	0.7405
Daily Pivot Point S1	0.7358
Daily Pivot Point S2	0.7334
Daily Pivot Point S3	0.73
Daily Pivot Point R1	0.7416
Daily Pivot Point R2	0.745
Daily Pivot Point R3	0.7474

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.