AUD/USD weakens amid risk aversion, fails to break above 0.6910

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  • USA: BC consumer sentiment falls to a 16-month low.
  • Stocks turned lower, major indices down 1% on average.
  • AUD/USD falls from six-day highs towards 0.6900.

US stocks turned lower on Tuesday and boosted the dollar. The AUD/USD fell to 0.6909, marking a new daily low. It remains below 0.6930 with a bearish intraday bias. Earlier it had risen to a six-day high at 0.6964.

Since last Friday, AUD/USD has been trading sideways between 0.6910 and 0.6960 with a modest uptrend. It is still unable to move significantly away from the two-year low at 0.6823 reached during the month of May.

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Risk aversion weighs on the AUD

AUD/USD found support on Tuesday above the 0.6905/10 support zone. A break down could trigger more losses; next strong support is at 0.6870, around last week’s low. To the upside, immediate resistance could be at the 20 hour SMA at 0.6930.

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The shares erased earlier gains. The S&P 500 falls 1.07%. The decline in Consumer Sentiment weighed on sentiment. The Conference Board index fell in June to the lowest level of the last 16 months, amid rising inflation and negative growth prospects.

Australian Retail Sales data will be released on Wednesday at 01:30 GMT (market consensus: 0.4%). Analysts at TD Securities see a 0.5% increase. “A strong retail sales figure will bolster the case for another aggressive move by the RBA (Reserve Bank of Australia) in July, following their inflated 50 basis point hike this month.”

Technical levels


Last Price Today 0.6909
Today’s Daily Change -0.0026
Today’s Daily Change % -0.37
Today’s Daily Opening 0.6935
20 Daily SMA 0.7051
50 Daily SMA 0.7082
100 Daily SMA 0.7211
200 Daily SMA 0.7231
Previous Daily High 0.6959
Previous Daily Minimum 0.6908
Previous Maximum Weekly 0.6997
Previous Weekly Minimum 0.6868
Monthly Prior Maximum 0.7267
Previous Monthly Minimum 0.6828
Daily Fibonacci 38.2% 0.6927
Daily Fibonacci 61.8% 0.6939
Daily Pivot Point S1 0.6909
Daily Pivot Point S2 0.6882
Daily Pivot Point S3 0.6857
Daily Pivot Point R1 0.696
Daily Pivot Point R2 0.6985
Daily Pivot Point R3 0.7012

Source: Fx Street

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