- AUD/USD regains lost ground, though it lacks continuity or bullish conviction.
- The risk-positive tone benefits the risk-sensitive AUD, though USD strength limits gains.
- Traders also seem reluctant to open aggressive positions ahead of the crucial US CPI release.
The pair AUD/USD attracts some buying near the 0.6630 zone on Tuesday and makes a new daily high during the early part of the European session. However, even It is difficult for him to capitalize on the intraday rise beyond the 0.6670 area and remains below a multi-day high hit the previous day.
As the shock of the failure of three US banks in one week began to subside, A modest recovery in global stock markets turned out to be a key factor providing some support for the AUD, sensitive to risk. That being said, a good rally in USD demand, bolstered by the recovery in US Treasury yields, is holding off any significant rally for AUD/USD, at least for now.
The rebound in US bond yields comes after the US authorities took steps to limit the fallout from the sudden failure of Silicon Valley Bank (SVB). In fact, the Federal Reserve announced on Sunday that make additional funds available to eligible depository institutions to help ensure that banks have the capacity to meet the needs of all their depositors and alleviate fears of a broader systemic crisis.
Aside from this, traders seem reluctant to open aggressive positions, preferring to wait on the sidelines for the release of key US consumer inflation figures due later in the American session. Given the strains in the US banking system, the Fed is expected to slow, if not stop, its rate hike cycle. Therefore, a stronger US CPI would not impress dollar bulls too much.
This, in turn, supports the prospects for a short-term bullish move for the AUD/USD pair. Having said that, the recent dovishness of the Reserve Bank of Australia (RBA), indicating that it may be nearing the end of its rate hike cycle, warrants some caution before confirming that the pair has bottomed out in the near term.
AUD/USD technical levels to watch
|Last price today||0.6662|
|Today Daily Variation||-0.0005|
|today’s daily variation||-0.07|
|today’s daily opening||0.6667|
|previous daily high||0.6717|
|previous daily low||0.6579|
|Previous Weekly High||0.677|
|previous weekly low||0.6564|
|Previous Monthly High||0.7158|
|Previous monthly minimum||0.6698|
|Fibonacci daily 38.2||0.6664|
|Fibonacci 61.8% daily||0.6632|
|Daily Pivot Point S1||0.6592|
|Daily Pivot Point S2||0.6516|
|Daily Pivot Point S3||0.6454|
|Daily Pivot Point R1||0.673|
|Daily Pivot Point R2||0.6792|
|Daily Pivot Point R3||0.6868|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.