OctaFX | OctaFX Forex Broker
Open trading account

AUD/USD regains some traction, holds above 0.7600 handle

   •  USD stalls overnight modest recovery move from 2-month lows.
   •  An uptick in the US bond yields might cap additional gains. 
   •  Fedspeak and US consumer confidence data in focus.

The AUD/USD pair caught some fresh bids on Tuesday and has now recovered previous session's sharp retracement slide from 2-week tops.

On Monday, the pair touched an intraday high level of 0.7645 but failed to build on the momentum and was being weighed down by a goodish US Dollar recovery, led by stronger-than-expected new home sales data.

Meanwhile, comments by Dallas Fed President Robert Kaplan reinforced prospects for an eventual Fed rate hike action in December, which further aggravated the profit-taking slide during the NY trading session on Monday. 

The modest greenback recovery move now seems to have lost steam and has been a sole driver of the pair's up-move through the Asian session on Tuesday, back above the 0.7600 handle. 

It, however, remains to be seen if the pair is able to build on the positive momentum or once again meets with some fresh supply at higher levels amid a modest pickup in the US Treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Aussie.

Later during the day, the release of CB's consumer confidence data and a scheduled speech by New York Fed President William Dudley would help traders to grab some short-term trading opportunities ahead of the Fed Chair Designate Jerome Powell's confirmation hearing before the Senate Committee.

Technical levels to watch

Immediate resistance is pegged near 0.7625 level, above which the momentum could get extended back towards mid-0.7600s before the pair eventually darts towards the very important 200-day SMA barrier near the 0.7695-0.7700 region.

On the flip side, weakness below the 0.7600 handle now seems to find support near the 0.7580 level, which if broken would turn the pair vulnerable to head back towards testing an important horizontal support near mid-0.7500s.

US: It’s all about interest rates - BBH

The US two-year yield has risen nearly 57 bp so far this year and the Federal Reserve has hiked rates twice and is poised to raise the Fed funds targe
Read more Previous

Crypto Today: Bitcoin consolidates below $ 9900, $ 10k still on sight

Bitcoin (BTC/USD), the most dominant cryptocurrency, prolongs its upward trajectory into a fifth day today and refreshed all-time highs at $ 9891.80 l
Read more Next
Start livechat