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AUD/USD: Bulls keep the reins above 0.6900 ahead of Aussie Q1 GDP

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  • AUD/USD rises to the highest since January 16, 0.6922 becomes the latest top in nearly five months.
  • Risk-tone gains a boost after US President seems to step back from earlier threat on combating the riots.
  • Aussie flashed upbeat figures, Housing figures, RBA’s Bullock and Q1 GDP will be the key, for now.

AUD/USD rises to 0.6915, intraday high of 0.6923, amid the recently high risk-on mood in the market during Wednesday’s Asian session. In doing so, the Aussie pair probes the highest since January 16, 2020, amid risk-positive news from the US as well as upbeat Aussie PMI data.

Australia’s AiG Performance of Construction Index for May rose beyond 21.6 previous to 24.9 whereas Commonwealth bank Services PMI grew past-25.5 forecast to 26.9. Further, the Commonwealth Bank’s Composite PMI also crossed 26.4 prior with a 28.1 mark.

Other than the data, news from Axios that US President Donald Trump is stepping back from the earlier threat to use military power in full form to tame the riots seems to have boosted the market’s risk-on sentiment.

As a result, the US 10-year Treasury yields gain 1.5 basis points (bps) to 0.698% whereas Japan’s NIKKEI gains over 2.0% to 22,795 amid the initial minutes of Tokyo open on Wednesday.

It should also be noted that the US health official’s cautious optimism surrounding the coronavirus (COVID-19) vaccine as well as hopes of economic restart and weak US dollar also pleases the Aussie bulls.

Having said that, traders are gearing up for the first quarter (Q1) Australian GDP, up for publishing at 01:30 GMT. While forecasts suggest a drop of 0.3% in QoQ GDP figures versus the 0.5% previous expansion, any downbeat readings may give reasons to the bears to enter at multi-day high levels.

Technical analysis

A sustained rise past-0.6900 enables the pair to aim for January 16 top near 0.6935 ahead of targeting 0.7000 round-figure. On the contrary, overbought RSI signals a pullback towards the early-January low near 0.6850, a break of which can recall February tops near 0.6775.

Additional important levels

Overview
Today last price 0.6914
Today Daily Change 18 pips
Today Daily Change % 0.26%
Today daily open 0.6896
Trends
Daily SMA20 0.6565
Daily SMA50 0.6398
Daily SMA100 0.6481
Daily SMA200 0.6658
Levels
Previous Daily High 0.6899
Previous Daily Low 0.6774
Previous Weekly High 0.6683
Previous Weekly Low 0.6519
Previous Monthly High 0.6683
Previous Monthly Low 0.6372
Daily Fibonacci 38.2% 0.6851
Daily Fibonacci 61.8% 0.6822
Daily Pivot Point S1 0.6814
Daily Pivot Point S2 0.6731
Daily Pivot Point S3 0.6689
Daily Pivot Point R1 0.6939
Daily Pivot Point R2 0.6981
Daily Pivot Point R3 0.7064

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