AUD/USD Daily Forecast – U.S. Dollar Tries To Move Higher Against Australian Dollar

AUD/USD Video 08.03.21.

Australian Dollar Is Mostly Flat Against U.S. Dollar

AUD/USD has managed to settle below the support at 0.7700 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has managed to get above the resistance at the 92 level and moved closer to the next resistance level at 92.25. In case the U.S. Dollar Index settles above this level, it will head towards the next resistance at 92.50 which will be bearish for AUD/USD.

There are no important economic reports scheduled to be published in the U.S. and Australia today so foreign exchange market traders will focus on U.S. government bond yields and the dynamics of commodity markets.

U.S. Treasury yields are moving higher after Senate passed the huge coronavirus relief bill. The market believes that higher inflation is a real threat, although the U.S. Fed has downplayed such risks.

Meanwhile, commodity markets remain strong which is good for commodity-related currencies like Australian dollar. WTI oil managed to get to the $67 level after Saudi facilities were attacked by the Houthis, but rising U.S. yields offset the positive impact of strong oil for AUD/USD.

Technical Analysis

AUD/USD is currently trying to get to the test of the support level at 0.7665. If AUD/USD declines below this level, it will head towards the next support at 0.7635. This support level has been recently tested and proved its strength.

In case AUD/USD settles below the support at 0.7635, it will head towards the next support level at 0.7600. RSI remains in the moderate territory so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

On the upside, the nearest resistance level for AUD/USD is located at 0.7700. If AUD/USD gets above this level, it will head towards the 50 EMA at 0.7720. A move above the 50 EMA will push AUD/USD towards the next resistance level which is located at the 20 EMA at 0.7760.

For a look at all of today’s economic events, check out our economic calendar.