Market news
27.06.2022, 09:46

AUD/USD remains on the defensive, holds comfortably above 0.6900 amid modest USD weakness

  • AUD/USD kicked off the new week on a weaker note, though lacked follow-through selling.
  • The recent slide in commodities, Chinese economic woes acted as a headwind for the aussie.
  • The risk-on impulse undermined the safe-haven USD and helped limit losses for the major.

The AUD/USD pair struggled to capitalize on Friday's goodish rebound from sub-0.6900 levels and met with a fresh supply on the first day of a new week. The pair maintained its offered tone through the first half of the European session and was last seen trading around the 0.6920 area, just a few pips above the daily low.

The recent slump in commodity prices turned out to be a key factor that continued acting as a headwind for the resources-linked Australian dollar. Adding to this, the fact that the Chinese economy is facing headwinds amid the resurgence of COVID-19 cases exerted additional downward pressure on the China-proxy aussie. That said, a combination of factors held back traders from placing aggressive bearish bets around the AUD/USD pair and helped limit deeper losses.

Investors turned optimistic amid hopes that inflation is nearing its peak and now seem to have scaled back their expectations for more aggressive rate hikes by the Fed. This was reinforced by a sharp corrective pullback in the US Treasury bond yields, which kept the US dollar bulls on the defensive. Apart from this, a generally positive risk tone around the equity markets further undermined the safe-haven greenback and offered some support to the risk-sensitive aussie.

From a technical perspective, the emergence of fresh selling at higher levels suggests that the recent downward trajectory witnessed since the beginning of this month is still far from being over. Hence, a subsequent fall back towards the monthly low, around the 0.6850 region, now looks like a distinct possibility. The AUD/USD pair could extend the fall further and eventually drop to challenge the YTD low, around the 0.6830-0.6825 region touched in May.

Market participants now look forward to the US economic docket, featuring the release of the Durable Goods Orders and Pending Home Sales data later during the early North American session. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the AUD/USD pair. Traders will further take cues from the broader risk sentiment to grab short-term opportunities around the major.

Technical levels to watch


© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location