- AUD/USD attracted fresh buying near the 0.7160 area and reversed the initial bearish gap opening.
- Upbeat data, bets on an eventual RBA rate hike in 2020 provided some support to the Aussie.
- A recovery in risk sentiment undermined the safe-haven USD and contributed to the upside move.
The pair AUD/USD built on its steady intraday move and rose to a fresh daily high, around the 0.7220-0.7225 region ahead of the American session.
After opening a bearish gap on Monday, the AUD/USD pair attracted some buying on the dips near 0.7150 and was supported by a combination of factors. The initial rally followed the upbeat release of Australian retail sales data, which reaffirmed market bets on an eventual interest rate hike by the Reserve Bank of Australia in 2022. Apart from this, a recovery in the stock markets caused some intraday selling around the safe. -haven of the US dollar and further benefited the Australian dollar perceived as more risky.
The initial reaction to the weekend’s developments around the Ukraine crisis seemed short-lived, evident in an intraday bounce in global stock markets. It is worth remembering that Western nations stepped up their efforts to punish Russia for its invasion of Ukraine and imposed harsh new sanctions, including removing some of its banks from the SWIFT financial network. In addition, Russian President Vladimir Putin upped the ante on Sunday and put the country’s strategic nuclear forces on high alert.
The market’s nervousness, however, calmed down after the Russian negotiator said that they are interested in reaching an agreement with Ukraine as soon as possible. In addition to this, reports indicated that the Ukraine-Russia dialogue has already started in Belarus and is being coined as “peace talks” by the Russian media, raising expectations of some de-escalation of tensions. This, in turn, helped risk-off sentiment stabilize a bit and provided a modest boost to the AUD/USD pair amid some repositioning trade ahead of the RBA on Tuesday.
That said, any bullish moves in the markets are likely to remain limited as focus remains glued to new developments surrounding the Russia-Ukraine saga. Therefore, it will be prudent to wait for some follow-on buying, possibly beyond the 100-day SMA hurdle, before positioning for further gains amid the absence of any relevant economic releases in the market.
Technical levels
AUD/USD
| Panorama | |
|---|---|
| Last Price Today | 0.7232 |
| Today’s Daily Change | 0.0001 |
| Today’s Daily Change % | 0.01 |
| Today’s Daily Opening | 0.7231 |
| Trends | |
|---|---|
| 20 Daily SMA | 0.7159 |
| 50 Daily SMA | 0.718 |
| 100 Daily SMA | 0.724 |
| 200 Daily SMA | 0.7335 |
| levels | |
|---|---|
| Previous Daily High | 0.7238 |
| Previous Daily Minimum | 0.714 |
| Previous Maximum Weekly | 0.7285 |
| Previous Weekly Minimum | 0.7094 |
| Monthly Prior Maximum | 0.7315 |
| Previous Monthly Minimum | 0.6966 |
| Daily Fibonacci 38.2% | 0.7201 |
| Daily Fibonacci 61.8% | 0.7178 |
| Daily Pivot Point S1 | 0.7168 |
| Daily Pivot Point S2 | 0.7106 |
| Daily Pivot Point S3 | 0.7071 |
| Daily Pivot Point R1 | 0.7266 |
| Daily Pivot Point R2 | 0.7301 |
| Daily Pivot Point R3 | 0.7364 |
Source: Fx Street
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