AUD/USD Slides To 0.6525 Area, Fresh Daily Low As Traders Await Chinese Trade Data

10 and one 10 us dollar bill

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  • AUD/USD comes under some renewed selling pressure and erodes a part of the overnight gains.
  • Reduced Fed rate cut bets, along with geopolitics, underpin the USD and drag spot prices lower.
  • Chinese trade data, the US consumer sentiment index and Fedspeak eyed for a fresh impetus.

The AUD/USD pair meets with a fresh supply during the Asian session on Friday and erodes a part of the previous day's goodish intraday move up from the 0.6500 psychological mark. Spot prices currently trade around the 0.6530-0.6525 area, though the downside seems cushioned amid mixed fundamental cues.

The South China Morning Post reported that Chinese Premier Li Qiang will visit Australia in June. This is seen as a sign of improving relations between Australia and China, which, in turn, is seen acting as a tailwind for the Aussie. Any meaningful appreciating move for the AUD/USD pair, however, seems elusive in the wake of the underlying bullish sentiment surrounding the US Dollar (USD), bolstered by hawkish Federal Reserve (Fed) expectations.

The hotter-than-expected US consumer inflation figures released on Wednesday forced investors to push back their bets about the timing of the first interest rate cut to September from June. The outlook keeps the US Treasury bond yields elevated, which, along with persistent geopolitical tensions, assists the USD to stand tall near the YTD peak. This, in turn, might continue to act as a headwind for the AUD/USD pair and warrants some caution for bulls.

Market participants now keenly await the release of Chinese trade balance data, which might influence the China-proxy Australian Dollar (AUD). Later during the early North American session, the Preliminary Michigan Consumer Sentiment Index and speeches by influential FOMC members will drive the USD demand, which, in turn, should provide some impetus to the AUD/USD pair. Nevertheless, spot prices seem poised to register weekly losses, though hold above the monthly swing low, around the 0.6480 region touched on April 1.


AUD/USD

OVERVIEW
Today last price 0.6526
Today Daily Change -0.0012
Today Daily Change % -0.18
Today daily open 0.6538

 

TRENDS
Daily SMA20 0.6549
Daily SMA50 0.6544
Daily SMA100 0.6603
Daily SMA200 0.6544

 

LEVELS
Previous Daily High 0.6553
Previous Daily Low 0.6502
Previous Weekly High 0.6619
Previous Weekly Low 0.6481
Previous Monthly High 0.6667
Previous Monthly Low 0.6478
Daily Fibonacci 38.2% 0.6534
Daily Fibonacci 61.8% 0.6521
Daily Pivot Point S1 0.6509
Daily Pivot Point S2 0.648
Daily Pivot Point S3 0.6458
Daily Pivot Point R1 0.656
Daily Pivot Point R2 0.6582
Daily Pivot Point R3 0.6611


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