AUD/USD pulls back from 5-month highs around 0.7063 and hovers around 0.6950

- Article Top Advertisement -
  • Following the bad US data, AUD/USD reversed course and sank below 0.7000.
  • Federal Reserve officials objected to interest rates going below 5%.
  • AUD/USD Price Analysis: FAilres at 0.7000, exacerbated the decline towards 0.6965.

The AUD/USD it erases its previous gains after hitting a multi-month high at 0.7063, plunges below 0.7000 and is back 0.27% on the day. Risk appetite deteriorated amid the lack of catalyst, although US data showed the economy slowing, which could have been the reason for the sour sentiment turn. The AUD/USD pair is trading at 0.6961.

US economic indicators were worse than expected, but supported the USD

Wall Street registers losses of between 0.77% and 1.21%. The Commerce Department reported December US Retail Sales contracting 1.1%m/m, above the estimated 0.8% contraction and worse than November’s downward revision to 1%. In annual terms, sales were flat at 6%.

- Article Inline Advertisement 1-

At the same time, the Labor Department revealed that December’s Producer Price Index (PPI) plunged to -0.5%m/m, pulverizing estimates of 0.1%. YoY numbers rose 6.2%, below forecasts of 6.8%, while core PPI advanced 5.5%, versus estimates of 5.7%.

On the other hand, the Federal Reserve reported that the Industrial Production in the United States decreased by -0.7% in December and -1.7% in the fourth quarter. In addition, US manufacturing production fell -1.3% last month, although November data was revised down -1.3%.

- Advertisement -

On the other hand, several officials of the Federal Reserve, headed by the president of the Fed of San Luis, James Bullard, crossed cables. Bullard stated that policy makers should bring the rate above 5% “as soon as possible”. Echoing some of her comments, Cleveland Fed President Loretta Mester said rates need to rise “a little bit” above 5%, stressing that it would be necessary based on her projections.

Following these comments, the AUD/USD pair reversed course after trading above the 0.7000 level. No catalyst stimulated the market reaction, only the hawkish comments from Fed officials, which had been repeated since the beginning of the year.

AUD/USD Price Analysis: Technical Perspective

From a technical perspective, the AUD/USD daily chart is forming an inverted hammer which, if it closes below Tuesday’s open at 0.697, would compound a deeper pullback, with the 20 day EMA at 0.6863. as the first support. AUD/USD prices hit a successive series of highs, while the Relative Strength Index (RSI) failed to break above its previous high. Therefore, a negative divergence between the quotes and the RSI could pave the way down.

Key AUD/USD support levels would be the Jan 17 low at 0.6929, followed by the Jan 12 daily low at 0.6869, before the mentioned 20-day EMA at 0.6863.


Last price today 0.696
daily change today -0.0026
Today Daily Variation % -0.37
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

Source: Fx Street

- Article Bottom Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles