AUD/USD at 5-month highs, tops 0.7000 awaiting PPI/US retail sales.

- Article Top Advertisement -
  • AUD/USD rises for the second day in a row and hits a new multi-month high.
  • The appearance of strong selling around the dollar is seen as a tailwind for the major pairs.
  • Increased bets on a further rate hike by the RBA remain supportive of the positive move.
  • Traders are looking forward to the US PPI and monthly Retail Sales data for further impetus.

For the second day in a row, the pair AUD/USD gains ground and continues to rise in the middle of the European session. The positive momentum lifts the pair to the 0.7035 zone, or the highest level since August 16 and is supported by the strongly offered tone surrounding the US dollar.

Indeed, the dollar index, which tracks the dollar against a basket of currencies, is nearing the seven-month low hit earlier this week and is coming under pressure from a combination of factors. The prospects of lower interest rate hikes by the Fed cause a further drop in US Treasury bond yields. Beyond this, the generally positive tone around equity markets further weakens the safe-haven dollar and benefits the risk-sensitive Australian dollar.

- Article Inline Advertisement 1-

Investors turned optimistic in the hope that the new stimulus measures announced by the Chinese government will lead to a strong recovery in the world’s second largest economy. Aside from this, the increased odds of a further Reserve Bank of Australia (RBA) rate hike in February lend some support to the national currency and act as a tailwind for the AUD pair. /USD. The positive move on Wednesday could also be attributed to technical buying above the key psychological level of 0.7000.

The aforementioned fundamental background favors bullish traders and supports the prospects for a further appreciation move in the short term for the AUD/USD pair. Therefore, any significant corrective pullback could be seen as a buying opportunity and is more likely to remain limited. Market Participants now await the US economic calendar, highlighting the release of the Producer Price Index and monthly Retail Sales data for short-term trading opportunities.

Technical levels to watch


Last price today 0.7024
Today I change daily 0.0038
today’s daily variation 0.54
today’s daily opening 0.6986
daily SMA20 0.6823
daily SMA50 0.6758
daily SMA100 0.6637
daily SMA200 0.6827
previous daily high 0.6997
previous daily low 0.693
Previous Weekly High 0.6994
previous weekly low 0.686
Previous Monthly High 0.6893
Previous monthly minimum 0.6629
Fibonacci daily 38.2 0.6971
Fibonacci 61.8% daily 0.6956
Daily Pivot Point S1 0.6945
Daily Pivot Point S2 0.6904
Daily Pivot Point S3 0.6877
Daily Pivot Point R1 0.7012
Daily Pivot Point R2 0.7038
Daily Pivot Point R3 0.708
- Advertisement -

Source: Fx Street

- Article Bottom Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles