top of page

Title: AUD/USD flirts with daily low, seems vulnerable amid stronger USD/softer risk tone

  • Writer: analysiswatch
    analysiswatch
  • Jul 11, 2022
  • 2 min read

Jul 11, 2022 01:35 AM ET


By: AnalysisWatch


The AUD/USD pair struggled to capitalize on last week's recovery move from the 0.6765-0.6760 area, a two-year low, and encountered fresh supply on Monday. The pair remained on the defensive at the start of European trade and was last seen trading near the daily low in the 0.6820-0.6815 area.


After a modest pullback from a fresh two-decade high following Friday's NFP report, the U.S. dollar was in demand again on the assumption that the Federal Reserve would stick to its faster pace of monetary tightening. The bets were reinforced by the latest monthly U.S. jobs report, which showed that the economy added 372,000 jobs in June, compared to expectations of 268,000. That said, the deteriorating economic outlook has continued to support the safe-haven dollar and put downward pressure on the risk-sensitive Australian dollar.


Investors remain concerned that rapidly rising interest rates and tightening financial conditions will challenge global economic growth. This, along with the ongoing war between Russia and Ukraine and the recent COVID-19 outbreak, has fueled recession fears. The combination of these factors favors USD bulls and supports the prospects of a resumption of the AUD/USD pair's downtrend. Therefore, a fall back towards the 0.6765-0.6760 support zone or the low for the year remains a good possibility.


There is no major market-moving economic data due for release in the US on Monday. Nevertheless, the risk sentiment of the overall market could influence the USD price dynamics and give some boost to the AUD/USD pair. However, the main focus will remain on the US consumer inflation figures on Wednesday.


Traders will also be guided by the monthly US retail sales and the preliminary Michigan consumer sentiment index on Friday. These will be crucial for near-term USD demand and will determine the next leg of the AUD/USD pair's directional change.

Komentáře


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page