AUD/USD: Buyers accelerate the run-up to 0.6000
- AUD/USD stays positive near the three-day high.
- US President Trump keeps signing nearness to COVID-19 Bill, turns down the odds of using the Defense Production Act.
- A light economic calendar in Asian will keep the focus on the coronavirus headlines.
Having been the biggest G10 winners the previous day, AUD/USD extends the recovery moves to 0.5985 amid the early Australian session on Wednesday. While optimism surrounding the US COVID-19 Bill seems to favor the broad risk-on, fear concerning the coronavirus (COVID-19) outbreak in the US is likely the latest drag on the quote.
The trifecta impact…
Not only increased odds of the US COVID-19 Bill, estimated around $2 trillion, but the previous declines in the coronavirus-led death toll in Italy and the Fed’s Quantitative Easing (QE) also helped the Aussie pair the previous day.
As per the recent updates from the UK’s Daily Mail, Italy's daily COVID-19 death toll shot back up today with 743 in one day, but more evidence emerged that the coronavirus infection rate is slowing thanks to a painful national lockdown.
On the other hand, the US President Donald Trump, in his latest public appearance, said that lawmakers getting very close to a fair deal on COVID-19 stimulus, senators hopefully will vote soon. The odds of the dead were also boosted by the White House Economic Adviser Larry Kudlow afterward.
Likely challenging the buyers are updates that suggest one in three cases are positive for the coronavirus in New York.
Amid all this, the US stock futures carry the previous day’s gains posted by Wall Street. It’s worth mentioning that the DJI30 marked the best rise since 2008 on Tuesday.
Investors will now take clues from the coronavirus headlines amid a lack of major data during the Asian session. However, the US Durable Goods Orders could entertain traders amid the US session.
Technical Analysis
The pair currently probes the 10-day SMA, at 0.5965, a sustained break of which could boost the odds of witnessing 0.6000 back to the charts. However, bulls are less likely to get convinced unless clearing the mid-month top near 0.6300. On the downside 0.5900 and 0.5850 hold the gate for the fresh declines towards 0.5700.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
