AUD/USD trims two-day losses and recovers 0.7300 on positive market mood

- Advertisement -
  • AUD/USD bounces off weekly losses, although down 0.65% on the week.
  • The disputes between Russia and Ukraine and the strong demands of both parties do not allow progress in the talks.
  • AUD/USD Technical Outlook – At press time, above the 200-day DMA, a close above would resume the uptrend.

The AUD/USD It breaks two days of losses for the week and is rising during the American session in a sudden improved market move, as European stocks show higher while US stock futures trade higher. At press time, the AUD/USD is trading at 0.7328.

Geopolitical headlines still control the media, so AUD/USD traders need to know the mood of the market. In the last hour, the Ukrainian president’s deputy chief of staff, Zhovkva, said that “Ukraine is ready for a diplomatic solution”, a headline that caused a slight increase in risk appetite, with Zhovkva also adding that Ukraine would neither give in nor one inch”. of its territory.

- Advertisement -

That said, we are back where we started, as Russia demands to recognize Donetsk/Lugansk as sovereign republics and Crimea as a Russian region. At the end of the day, the Ukrainian and Russian foreign ministers will meet in Turkey, as reported on Monday.

Aside from this, Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated that the bank would be “patient” regarding monetary policy. He stressed that wage growth and core inflation in Australia are softer than in other countries, giving the central bank room to assess incoming data and geopolitical developments. When asked about a rate hike this year, he said it’s “plausible.”

- Advertisement -

AUD/USD overnight was moderate near weekly lows within the 0.7264-80 range. However, as European markets opened and risk aversion subsided, the pair rose 50 pips towards the 100 hourly simple moving average (SMA) located at 0.7330.

Meanwhile, the Australian economic docket presented Westpac Consumer Confidence for March, which was worse than expected, although it did not cause any movement in the pair. On the other hand, US JOLT openings for January were up 11.263 million more than the 10.925 million forecast.

AUD/USD Price Forecast: Technical Outlook

On Tuesday, the AUD/USD closed above the 38.2% Fibonacci level. That, coupled with the previous February 10 resistance-now-support daily high in that area, and improving market sentiment fueled a jump in today’s price action, also attributed to weaker market demand. dollar.

AUD/USD on its way north breaks the 200-day moving average (DMA) at 0.7315. In the case of a downward move, it would be the first support. However, a daily close above would resume the uptrend. In that case, the first AUD/USD resistance would be 0.7367, followed by 0.7400 and the yearly high at 0.7441, reached on March 7th.

Additional technical levels

Source: Fx Street

- Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles