The Australian dollar has initially tried to rally on Monday but then pulled back just a bit to test the 50 day EMA yet again.
The direction of the AUD/USD on Monday will be determined by trader reaction to the pair of 50% levels at .7769 and .7790.
The dollar edged higher in early European trade Monday, with this safe haven supported by concerns over fresh Covid-19 outbreaks in some Asian countries. “This means that in the coming months, the prime USD drivers should be deeply negative front-end real rates and the rebounding global economy.”
Economic data from China came up short of forecasts early this morning. With the economic calendar on the lighter side, stats from the U.S will put the Dollar back in focus.
The AUD/USD and NZD/USD closed higher on Friday, an upbeat conclusion to a whipsaw week of buying and selling as signs of a rebounding economy squared off against mounting inflation jitters.
The Yen, Aussie and Kiwi whipsawed as investors betting on a rebounding economy squared off against those fearful of inflation.
It’s a busier week ahead on the economic calendar. Private sector PMIs will draw plenty of interest late in the week. Geopolitics will also be in focus in the week.
The Australian dollar has pulled back during most of the week, but it is worth noting that as we close out the trading week, support has held.
AUD/USD Current Price: 0.7728 Australian May Consumer Inflation Expectations are foreseen at 3.6%. Gold prices recovered some ground, providing support to the Aussie. AUD/USD is neutral-to-bearish in the near-term, could near 0.7600. The AUD/USD pair traded as low as 0.7687, bouncing during US trading hours to settle in the 0.7730 price zone. The recovery was backed by US equities and gold prices, which recovered during the American session, with US indexes finishing the day in the green and spot gold reaching $ 1,825 a troy ounce. Australia will publish this Friday, May Consumer Inflation Expectations, foreseen at 3.6% from 3.2% in the previous month. AUD/USD Short-Term Technical Outlook The AUD/USD pair maintains the sour tone, and could still fall to fresher lows below the 0.7700 level. The 4-hour chart shows that the pair is struggling to remain above a flat 200 SMA, but also that the 20 SMA has accelerated its decline above the current level. Technical indicators lack directional strength, holding within negative levels. The pair has met buyers at the bottom of its latest range, but the risk of a fresh leg south has increased. Support levels: 0.7690 0.7650 0.7620 Resistance levels: 0.7770 0.7820 0.7860 View Live Chart for the AUD/USD Image Sourced from Pixabay See more from BenzingaClick here for options trades from BenzingaEUR/USD Is Technically Bearish And Could Challenge The 1.2000 LevelEUR/USD Trades At Fresh Weekly Lows And Could Keep Falling In The Near-Term© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Australian dollar rallied a bit during the trading session on Friday as it looks like support is going to continue to come back into this market.