- AUD/USD starts the week on a positive note and hits a new monthly high.
- A combination of factors is helping to reignite demand for the USD and limiting the pair’s upside.
- Traders look to the US ISM services PMI to get a bit of a boost ahead of the RBA on Tuesday.
The pair AUD/USD has risen to its highest level since August 13 on the first day of a new week, although it has struggled to capitalize on the move beyond 0.6850. The pair paring some of its intraday gains and pulling back towards the 0.6800 level during the first half of the European session.
A combination of factors is helping the US dollar to recover modestly from the five-month lows hit on Monday, which in turn is acting as a headwind for the AUD/USD pair. The concern about a deeper global economic recession casts a shadow over the latest optimism about the easing of COVID-19 restrictions in China. This is revealed in a generally softer tone around stock markets, which drives some safe-haven money flows into the USD and weighs on the perceived riskier Aussie. Apart from this, an intraday rally in US Treasury yields offers some support for the dollar.
The US monthly employment report (NFP) released on Friday and a surprise rise in wages point to a further increase in inflationary pressures. The data validates Fed Chairman Jerome Powell’s forecast that the maximum interest rate will be higher than expected and suggest that the US central bank will continue to tighten its monetary policy. This, in turn, is seen pushing US Treasury yields higher. That said, recent comments from several FOMC officials support the prospects for relatively minor rate hikes from the US central bank, which could limit dollar gains.
Traders may also refrain from positioning for a deeper corrective pullback for AUD/USD as attention now turns to Tuesday’s Reserve Bank of Australia (RBA) meeting. Ahead of the key central bank event, the US ISM services PMI could give the AUD/USD pair some lift later during the American session on Monday. This, coupled with US bond yields and broader risk sentiment, will influence USD price dynamics and help create near-term opportunities around AUD/USD.
AUD/USD technical levels
AUD/USD
Overview | |
---|---|
Last price today | 0.6811 |
Today I change daily | 0.0007 |
Today’s daily change in % | 0.10 |
today’s daily opening | 0.6804 |
Trends | |
---|---|
daily SMA20 | 0.6677 |
daily SMA50 | 0.65 |
daily SMA100 | 0.6688 |
daily SMA200 | 0.6924 |
levels | |
---|---|
previous daily high | 0.6836 |
previous daily low | 0.6742 |
Previous Weekly High | 0.6845 |
previous weekly low | 0.664 |
Previous Monthly High | 0.6801 |
Previous monthly minimum | 0.6272 |
Daily Fibonacci of 38.2% | 0.6778 |
Daily Fibonacci of 61.8% | 0.68 |
Daily Pivot Point S1 | 0.6752 |
Daily Pivot Point S2 | 0.67 |
Daily Pivot Point S3 | 0.6658 |
Daily Pivot Point R1 | 0.6846 |
Daily Pivot Point R2 | 0.6888 |
Daily Pivot Point R3 | 0.694 |
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.