AUD/USD reverses sharply from all-time highs to fresh lows below 0.6740

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  • Dollar soars across the board on US data.
  • The Aussie is under pressure against the dollar ahead of the RBA.
  • AUD/USD falls more than a hundred points from the monthly highs to the lows since Wednesday.

The AUD/USD it continued to fall after breaking below 0.6800 and recently reached its low since Wednesday at 0.6740. The pair remains near the bottom, under pressure amid an overall stronger US dollar following US economic data.

Good US data is bad news for Wall Street

US economic data beat expectations on Monday, helping the dollar. The S&P Global Composite PMI for November was revised from the preliminary reading of 46.3 to 46.4. October factory orders rose 1%, beating expectations for a 0.7% increase. The November ISM Services PMI rose from 54.4 to 56.5. The prices paid index fell from 70.7 to 70.

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Following the latest reports, the dollar gained momentum across the board and hit new all-time highs. Metals extended their slide and US stocks hit new lows.

The RBA is next

On Tuesday, the Reserve Bank of Australia (RBA) will announce its decision on monetary policy. Consensus is for a 25 basis point rate hike. The decision and guidance offered in the release will likely have a major impact on the Aussie.

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“The statement would be dovish if the Bank says it will assess data over the holidays to determine its next cash rate move. Alternatively, the Bank explicitly stating 300 basis points of cumulative hikes would also dovish (the RBA assumed 300 basis points for July 23)”, explain the analysts of TD Securites.

Short-term technical outlook

AUD/USD has undergone a sharp reversal and the outlook has deteriorated considerably for bulls. A recovery above 0.6800 would shift momentum towards the Aussie. Above the resistance lies 0.6820. If the pair sustains above 0.6840, a retest of the recent high at 0.6850 seems likely.

On the other hand, a support zone emerges around 0.6720. A break down would put attention at 0.6700 and the next barrier would be at 0.6665.

technical levels

AUD/USD

Overview
Last price today 0.678
today’s daily change -0.0024
Today’s daily change in % -0.35
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

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