- AUD/USD keeps the red, as the DXY rebounds amid a cautious mood.
- Fresh China-US concerns dent the aussie’s appeal.
- The aussie’s upside appears capped by the 21-HMA at 0.7755.
AUD/USD is slightly off the lows but remains below 0.7750, posting small losses so far this Tuesday, as the US dollar is on a steady recovery mode against its main rivals.
Uncertainty over the US stimulus combined with growing inflation concerns keeps investors unnerved, lifting the dollar’s haven demand.
Meanwhile, the aussie also felt the jitters from the renewed US-Sino tensions after China filed the second draft of legislation aimed at countering sanctions imposed by foreign governments, including the US.
Additionally, the mixed Australian NAB Business Survey also failed to offer any impetus to the bulls while Melbourne covid concerns continue to undermine the local currency.
Markets eagerly await the US CPI data due this Thursday for fresh hints on the Fed’s monetary policy path. In the meantime, the aussie will continue to remain at the mercy of the dollar dynamics and risk trends.
AUD/USD technical outlook
At the time of writing, AUD/USD remains capped between the 21 and 50-hourly moving averages (HMA), placed at 0.7755 and 0.7735 respectively.
The Relative Strength Index (RSI) witnessed an uptick but still remains below the midline.
Meanwhile, the spot has confirmed a golden cross on the hourly sticks, with the 50-HMA cutting above the 200-HMA, offering some hope to the buyers.
To conclude, the aussie could continue its prison range between the two averages amid mixed technical indicators on the given time frame.
AUD/USD hourly chart
AUD/USD additional levels to watch
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