The AUD/USD pair traded with a mild positive bias through the Asian session, though lacked any follow-through buying beyond the 0.7400 mark.

The pair struggled to capitalize on Friday's goodish rebound from the post-NFP swing lows to multi-week lows and witnessed subdued/range-bound price moves on the first day of a new week. Against the backdrop of the upbeat US monthly jobs report, a solid rebound in the US Treasury bond yields acted as a tailwind for the US dollar and capped the upside for the AUD/USD pair.

Apart from this, a cautious mood around the Asian equity markets further held traders from placing bullish bets around the perceived riskier aussie. That said, the Fed's dovish outlook kept a lid on any meaningful gains for the greenback and extended some support to the AUD/USD pair. It is worth recalling that the Fed last week reiterated that inflation is transitory.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Looking at AUD/USD’s daily chart, the major is looking to retest the critical 100-Daily Moving Average (DMA) support at 0.7379, having failed to find acceptance above the 0.7400 level for the second straight session.

The horizontal 50-DMA at 0.7367 will be next strong support, below which the sellers will look for fresh entries, which could drag the rates towards the 0.7300 threshold.

The 14-Day Relative Strength Index (RSI) is trading listlessly but still below the midline, suggesting that there is more room for the downside. On the flip side, the aussie bulls will challenge the upward-pointing 21-DMA at 0.7448 should the 100-DMA hold the fort yet again.

Further up, a rally towards Thursday’s high of 0.7471 cannot be ruled out. The next relevant upside barrier for the pair is placed at the 0.7500 round figure.

Expecting AUDUSD to retrieve from 61.8% fibo

Nov 08 2021