- AUD/USD witnessed a modest intraday pullback from multi-week tops.
- A combination of supporting factors helped limit any meaningful slide.
The AUD/USD pair edged lower on Thursday and refreshed session lows in the last hour, albeit showed some resilience below the 0.6200 mark.
The pair stalled its recent positive momentum near mid-0.6200s and witnessed a modest intraday pullback from near four-week tops following the release of the RBA’s Financial Stability Report (FSR).
The report cited that the Aussie financial system was strong initially before now faces increased risks due to heightened uncertainty related to the coronavirus pandemic, which prompted some selling.
However, fresh optimism over forecasts that the pandemic peak could come soon remained supportive of the risk-on mood and continued lending some support to perceived riskier currencies, like the aussie.
This coupled with a subdued US dollar price action, possibly on the back of a weaker tone surrounding the US Treasury bond yields, further collaborated towards limiting any meaningful downside for the pair.
The pair quickly recovered around 30-35 pips from daily lows and is currently placed in the neutral territory, around the 0.6230 region as the market attention now turns to the US macro releases.
Thursday's US economic docket highlights the release of initial weekly jobless claims, which along with March PPI figures might influence the USD price dynamics and provide some trading impetus.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD loses ground due to the absence of a hawkish RBA
The Australian Dollar has plunged following the Reserve Bank of Australia's decision to maintain its interest rate at 4.35% on Tuesday. Investors sentiment leaned toward a potentially more hawkish stance from the RBA, particularly after last week's inflation data surpassed expectations.
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
Gold price remains on the defensive on a firmer US Dollar
Gold price attracts some sellers on the firmer US Dollar during the Asian trading hours on Wednesday. The hawkish remarks from Federal Reserve officials dampen hopes for potential interest rate cuts in 2024 despite weaker-than-expected US employment reports in April.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
FTX has filed a consensus-based plan for its reorganization, coming almost two years after the now defunct FTX filed for Chapter 11 Bankruptcy Protection in the District of Delaware.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.