AUD/USD buyers catch a breath around three-week high above 0.6200

  • AUD/USD seesaws near three-week high after a three-day winning streak.
  • Market sentiment improved amid expectations of further stimulus, likely easy run for the preferred US presidential candidate.
  • Australia announced another aid package, WTO anticipated a 32% blow to trade.
  • Virus data continues to challenge the world, a light economic calendar ahead.

Following its run-up to a three-week top, not to forget consecutive three-days of rising, AUD/USD pauses for a break around 0.6230 at the start of Thursday’s Asian session. While the recovery in risk-tone and Aussie stimulus to combat the coronavirus (COVID-19) kept buyers happy, the virus data offered fewer reasons to stay optimistic.

The receding virus death toll from the European hotspots and expectations of further stimulus, coupled with US President Donald Trump’s efforts to placate traders, countered S&P’s negative outlook on Aussie credit rating. The move got extra ammunition from Australia’s $80 billion jobs-rescue packages that total the nation’s 16.4% GDP contribution towards fighting the pandemic.

The recent push to the market’s risk-tone could be from the news that Bernie Sanders stepped back from the US Presidential Candidate, giving an edge to the market favorite Joe Biden.

On the contrary, the US numbers of the pandemic as well as the World Trade Organization’s (WTO) forecast of a heavy downside impact of the virus on the global trade, likely down between 13% and 32%, weigh on the risk-tone.

While portraying the mood, the US 10-year treasury yields registered a gain of four basis points (bps) to 0.77% whereas Wall Street benchmarks mark gains worth near 3.0% each.

Amid a light economic calendar, the RBA’s Bi-annual Financial Stability Review could offer intermediate moves ahead of the busy US docket comprising weekly Jobless Claims, Producers Price Index (PPI) and Michigan Consumer Sentiment to name a few. Additionally, virus data and updates will also offer strong signals to direct the pair’s near-term moves.

Technical analysis

An area comprising March 09 low surrounding 0.6300/10 will precede a 50-day SMA level of 0.6390 to challenge further buying. On the downside, sellers await a clear break below 21-day SMA figures near 0.6050 for fresh entry.

Additional important levels

Today last price 0.6233
Today Daily Change 64 pips
Today Daily Change % 1.04%
Today daily open 0.6169
Daily SMA20 0.6052
Daily SMA50 0.6412
Daily SMA100 0.664
Daily SMA200 0.6739
Previous Daily High 0.6209
Previous Daily Low 0.6074
Previous Weekly High 0.6214
Previous Weekly Low 0.598
Previous Monthly High 0.6686
Previous Monthly Low 0.5509
Daily Fibonacci 38.2% 0.6157
Daily Fibonacci 61.8% 0.6126
Daily Pivot Point S1 0.6092
Daily Pivot Point S2 0.6016
Daily Pivot Point S3 0.5957
Daily Pivot Point R1 0.6227
Daily Pivot Point R2 0.6286
Daily Pivot Point R3 0.6362



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more