AUD/USD clings to 0.6930 as politics at EU/UK entertain traders

Risk tone remains light ahead of the empty calendar.
Greenback weakness pleases commodity-linked currencies.

Anil Panchal FXStreet

Although failure to cross mid-month low questions AUD/USD buyers, the Aussie pair is taking the rounds near 0.6930 during early Monday.

The quote has been on the bids off-late as the soft greenback and positive signals from the EU and the UK politics favored global risk sentiment despite the US-China stalemate over trade.

Recent news reports from the EU election results are in the spotlight for now. While defeat at the municipal levels pushed Greek PM to call for a snap election, earlier readings show that the Brexit party is a leader at the UK’s EU election counts.

As per the CNBC news report, the EU Parliament will be much more fragmented over the next five years with the established centrist bloc failing to gain a majority at this week’s election, early election results and projections show.

While the AUD/USD pair is considered as a risk barometer, another such gauge is 10-year US treasury yield that is in green to 2.328% now.

Looking forward, fewer/no significant data/events are on the cards due to the holidays in the US. As a result, investors may closely follow news concerning the EU election and the trade rift between the US and China for fresh impulse.

Technical Analysis

Unless clearing 0.6940/50 resistance-area, prices are less likely to aim for 0.7000 and 0.7070 numbers to the north, which in turn highlights the importance of 0.6900 and 0.6860 support levels.

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.

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