- The AUD/USD pair witnessed aggressive selling and reversed its gains recorded in the last three sessions.
- The conflict between Russia and Ukraine benefited the safe-haven USD and weighed on the perceived riskier Australian dollar.
- Investors are now keeping an eye on US data, although attention will remain on geopolitics and the situation in Ukraine.
The pair AUD/USD It maintained its strongly offered tone during the mid-European session and was last seen trading around the 0.7165 region, or a one-week low.
Russian military forces invaded Ukraine earlier this Thursday and fired missiles at several Ukrainian cities. Reports indicated that as many as 40 Ukrainian soldiers and 10 civilians were killed by Russian shelling. Ukraine added that troops continue to cross its borders into the eastern regions and land by sea in the cities of Odessa and Mariupol in the south.
The worsening situation in Ukraine triggered a sell-off in world stock markets. Investors rushed into traditional safe-haven assets, boosting the US dollar and sparking aggressive selling around the perceived riskier Australian dollar. Downside pressure did not abate amid fears of further escalation of tensions between Russia and the West.
The United States and its allies were quick to condemn Russia’s actions, and President Joe Biden said he would meet with G7 leaders to map out tougher measures against Russia. This, in turn, kept investors on edge, which was evident by the ongoing free fall in the financial markets and forced the AUD/USD pair to reverse its gains recorded in the last three trading sessions.
Market participants are now eagerly awaiting the US economic docket, highlighting the release of the preliminary GDP report and the usual initial weekly jobless claims. However, the data could do little to influence USD price dynamics. The focus remains on the developments surrounding the Russia-Ukraine saga, which will boost broader risk sentiment and provide some lift to the AUD/USD pair.
Technical levels
AUD/USD
| Panorama | |
|---|---|
| Last Price Today | 0.7158 |
| Today’s Daily Change | -0.0072 |
| Today’s Daily Change % | -1.00 |
| Today’s Daily Opening | 0.723 |
| Trends | |
|---|---|
| 20 Daily SMA | 0.714 |
| 50 Daily SMA | 0.7178 |
| 100 Daily SMA | 0.7242 |
| 200 Daily SMA | 0.7341 |
| levels | |
|---|---|
| Previous Daily High | 0.7285 |
| Previous Daily Minimum | 0.7216 |
| Previous Maximum Weekly | 0.7229 |
| Previous Weekly Minimum | 0.7086 |
| Monthly Prior Maximum | 0.7315 |
| Previous Monthly Minimum | 0.6966 |
| Daily Fibonacci 38.2% | 0.7259 |
| Daily Fibonacci 61.8% | 0.7243 |
| Daily Pivot Point S1 | 0.7203 |
| Daily Pivot Point S2 | 0.7175 |
| Daily Pivot Point S3 | 0.7134 |
| Daily Pivot Point R1 | 0.7271 |
| Daily Pivot Point R2 | 0.7312 |
| Daily Pivot Point R3 | 0.734 |
Source: Fx Street
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