AUD/USD bounces off weekly lows, still deep in the red around 0.7810-15 region

The prevalent risk-off mood prompted some heavy selling around AUD/USD on Wednesday.
Inflation concerns, escalating conflict between Israel and Palestine dented the danger sentiment.
A subdued USD price action helped limit any longer losses before the critical US CPI report.
The AUD/USD pair managed to recover around 30 pips from weekly lows and was last seen trading comfortably above the 0.7800 mark, still over 0.30% for the day.

The pair witnessed some heavy selling during the primary half the trading action on Wednesday and extended this week’s retracement slide from the 0.7890 area, or the very best level since February 25. The aussie was weighed down by China’s decision last week to halt all high-level economic dialogue with Australia. The move pointed to strained relations between the 2 countries, which, along side the prevalent risk-off mood, drove flows faraway from the perceived riskier Australian dollar .

The global risk sentiment took successful amid a dramatic escalation of conflict between Israel and Palestinian militant group, sparked by unrest at Jerusalem’s flashpoint Al-Aqsa Mosque compound. In fact, the 2 bitter enemies exchanged heavy fire on Tuesday, killing a minimum of 35 Palestinians in Gaza. This comes on the rear of worries that rising inflationary pressure might force the Fed to hike interest rates before anticipated and further dented investors’ confidence.

Meanwhile, the worldwide flight to the security provided prompted some intraday short-covering move round the US dollar. That said, a softer tone surrounding the US Treasury bond yields kept a lid on the attempted USD recovery. This, in turn, helped limit any longer losses, rather assisted the AUD/USD pair to draw in some dip-buying at lower levels. The upside, however, is probably going to stay limited before Wednesday’s release of the critical US consumer inflation figures.

Technical levels to observe
Today last price 0.7814
Today Daily Change -0.0026
Today Daily Change % -0.33
Today daily open 0.784

Daily SMA20 0.7762
Daily SMA50 0.7711
Daily SMA100 0.7718
Daily SMA200 0.7487

Previous Daily High 0.7857
Previous Daily Low 0.782
Previous Weekly High 0.7863
Previous Weekly Low 0.7674
Previous Monthly High 0.7819
Previous Monthly Low 0.7531
Daily Fibonacci 38.2% 0.7843
Daily Fibonacci 61.8% 0.7834
Daily Pivot Point S1 0.7821
Daily Pivot Point S2 0.7802
Daily Pivot Point S3 0.7784
Daily Pivot Point R1 0.7859
Daily Pivot Point R2 0.7876
Daily Pivot Point R3 0.7896

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AUD/USD bounces off weekly lows, still deep in the red around 0.7810-15 region

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