- 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
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.
Recommended content
Editors’ Picks
AUD/USD favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
Bitcoin price defends $60K as whales hold onto their BTC despite market dip
Bitcoin (BTC) price still has traders and investors at the edge of their seats as it slides further away from its all-time high (ATH) of $73,777. Some call it a shakeout meant to dispel the weak hands, while others see it as a buying opportunity.
Friday's Silver selloff may have actually been great news for silver bulls!
Silver endured a significant selloff last Friday. Was this another step forward in the bull market? This may seem counterintuitive, but GoldMoney founder James Turk thinks it was a positive sign for silver bulls.