- AUD / USD is moving lower as USD strengthens amid cautious sentiment.
- The new concerns between China and the United States are taking a toll on the attractiveness of the Australian dollar.
- The AUD / USD rally appears limited by the 21-hour SMA at 0.7755.
The AUD / USD pair is recovering slightly from daily lows but remains below the 0.7750 level, recording small losses in the European session on Tuesday, as the US dollar is in steady recovery mode against its main rivals.
Uncertainty about the US stimulus, combined with growing concerns about inflation, is keeping investors nervous, driving up demand for the safe-haven US dollar.
Meanwhile, the Australian dollar has also felt the jitters of renewed tensions between the United States and China after China introduced the second draft of legislation aimed at countering sanctions imposed by foreign governments, including the United States.
Furthermore, the mixed results of Australia’s NAB business survey have also failed to offer any boost to the pair’s bulls, while concerns about covid in Melbourne continue to weigh on the local currency.
Markets are eagerly awaiting the US CPI data to be released this Thursday for new insights into the Fed’s monetary policy trajectory. Meanwhile, the Aussie will remain at the mercy of the USD’s dynamics and trend trends. risk.
Technical perspective of the AUD / USD
At the time of writing, the AUD / USD remains capped between the 21 and 50 hourly moving averages, located at 0.7755 and 0.7735 respectively.
The RSI witnessed a rally, but it is still holding below the midline.
Meanwhile, the pair has confirmed a golden crossover on the 1 hour chart, with the 50 SMA cutting above the 200 SMA, offering buyers some hope.
The pair could continue its range between the two moving averages amid mixed technical indicators on this time frame.
AUD / USD 1 hour chart
AUD / USD technical levels
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