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AUD/USD jumps to fresh multi-month tops, around 0.6830 level

AUD/USD jumps to fresh multi-month tops, around 0.6830 level

  • AUD/USD gains some traction and finally breaks out of its Asian session consolidation phase.
  • The aussie remained supported by upbeat domestic data and status-quo RBA policy decision.
  • A subdued USD demand remained supportive of the uptick to the highest level since late Jan.

The AUD/USD pair edged higher during the early European session and climbed to fresh four-month tops, around the 0.6830 region in the last hour.

Following a brief consolidation through the early part of Tuesday's trading action, the pair managed to regain some positive traction and built on the previous day's strong intraday upsurge of over 150 pips. The uptick added credence to the overnight sustained break through the very important 200-day SMA resistance ahead of the 0.6700 mark.

Earlier this Tuesday, the Australian dollar benefitted from a larger than expected jump in the domestic current account surplus, which widened to A$8.4 billion in the first quarter of 2020 as compared to A$1.0 billion in the previous quarter. The AUD/USD pair had a rather muted reaction to the latest RBA policy decision.

 

At its June policy meeting, the Australian central bank decided to keep the official cash rate at the record low level of 0.25% and reiterated that monetary policy is set to remain accommodative for as long as it is required. The RBA also left its forward guidance on rates and the yields target unchanged, though failed to impress bulls.

On the other hand, the US dollar remained on the defensive amid the recent optimism about the global economic recovery. This coupled with a widespread protect in dozens of American cities over the death of George Floyd at the hands of Minneapolis police further undermined the greenback and extended some support to the AUD/USD pair.

Meanwhile, concerns about a further escalation in tensions between the United States and China seemed to be the only factor capping gains for the China-proxy Australian dollar. It is worth reporting that China on Monday halted orders of US soybeans and other agricultural products, and also cancelled some pork orders.

This coupled with slightly overbought conditions on short-term charts might hold bulls from placing fresh bets and keep a lid on any additional gains, instead might prompt some profit-taking at higher levels. Hence, any subsequent positive move runs the risk of fizzling out rather quickly and remain capped near the 0.6840-50 region.

Technical levels to watch

AUD/USD

OVERVIEW
Today last price 0.6813
Today Daily Change 0.0015
Today Daily Change % 0.22
Today daily open 0.6798
 
TRENDS
Daily SMA20 0.6541
Daily SMA50 0.6379
Daily SMA100 0.6481
Daily SMA200 0.6658
 
LEVELS
Previous Daily High 0.6804
Previous Daily Low 0.6648
Previous Weekly High 0.6683
Previous Weekly Low 0.6519
Previous Monthly High 0.6683
Previous Monthly Low 0.6372
Daily Fibonacci 38.2% 0.6745
Daily Fibonacci 61.8% 0.6708
Daily Pivot Point S1 0.6696
Daily Pivot Point S2 0.6595
Daily Pivot Point S3 0.6541
Daily Pivot Point R1 0.6852
Daily Pivot Point R2 0.6906
Daily Pivot Point R3 0.7007

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