- A combination of factors assisted AUD/USD to gain traction for the fifth straight session on Monday.
- The upbeat market mood undermined the safe-haven USD and benefitted the perceived riskier aussie.
- Investors now eye US ISM Non-Manufacturing PMI for some impetus ahead of the RBA on Tuesday.
The USD bearish pressure remained unabated through the early North American session and lifted the AUD/USD pair to near four-week tops, around the 0.6980 region in the last hour.
Despite concerns about the continuous rise in coronavirus cases, investors remained optimistic over a sharp V-shaped global economic recovery. This, in turn, remained supportive of the prevalent upbeat market mood, which weighed heavily on the safe-haven US dollar and benefitted perceived riskier currencies – including the aussie.
The AUD/USD pair prolonged its positive move witnessed over the past one week or so and continued gaining traction for the fifth consecutive session on Monday. Bulls might now be eyeing a move towards reclaiming the key 0.7000 psychological mark, above which the pair is likely to aim to retest YTD tops, around the 0.7065 region.
Market participants now look forward to the release of US ISM Non-Manufacturing PMI for a fresh impetus. The gauge is anticipated to come in at 50.1 for June. A surprisingly positive reading will offer further evidence that the worst of the coronavirus pandemic was probably over and provide an additional boost to the already stronger global risk sentiment.
It, however, remains to be seen if bulls can maintain their dominant position or opt to take some profits off the table as the focus now shifts to the latest RBA policy update. The Australian central bank is scheduled to announce its decision during the Asian session on Tuesday, which might play a key role in influencing the AUD/USD pair's near-term trajectory.
Technical levels to watch
|Today last price||0.6975|
|Today Daily Change||0.0033|
|Today Daily Change %||0.48|
|Today daily open||0.6942|
|Previous Daily High||0.6949|
|Previous Daily Low||0.6912|
|Previous Weekly High||0.6953|
|Previous Weekly Low||0.6832|
|Previous Monthly High||0.7065|
|Previous Monthly Low||0.6648|
|Daily Fibonacci 38.2%||0.6935|
|Daily Fibonacci 61.8%||0.6926|
|Daily Pivot Point S1||0.692|
|Daily Pivot Point S2||0.6898|
|Daily Pivot Point S3||0.6884|
|Daily Pivot Point R1||0.6956|
|Daily Pivot Point R2||0.6971|
|Daily Pivot Point R3||0.6993|
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.