FXStreet (Mumbai) – The Australian dollar shaved-off gains versus its American counterpart in the mid-Asian trades, now pushing AUD/USD further down to test 0.69 handle.
AUD/USD keeps falling from 0.6958 highs
Currently, the AUD/USD pair trades almost unchanged at 0.6905, giving up almost 60 pips from session highs reached at 0.6958 in early Asia. The risk conditions seem to have worsened over the last hours, with the Asian stocks paring gains as oil and copper recovery falters.
Thus, the demand for higher-yielding currencies such as the AUD took a hit once again, with the Aussie now testing lows just ahead of 0.69 handle.
In the last hours, the Nikkei pared gains and now trades modestly flat versus +1.60% previous, while Australia’s ASX 200 trades +0.70% versus +1.13% seen earlier. While investors are flocking to safe-havens in a bid to protect their capital and hence, hurting risk-on flows badly.
Nothing of note on the agenda today for the pair and hence all eyes will remain on the EIA weekly inventory report for fresh cues on the black gold, while the risk sentiment will continue to drive the markets.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.6937/42 (1h 200-SMA/ Jan 20 High) above which gains could be extended to the next hurdle located at 0.6979 (daily R1). On the flip side, the immediate support located at 0.6862 (Daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6824 (Jan 15 low).
(Market News Provided by FXstreet)