AUD/USD drops 1.0%, below 0.5900, as US Senate members jostle over the aid package


  • AUD/USD declines following the pullback from the weekly top.
  • US Democrats show disappointment from the US bill, which could delay the final voting on the $2.2 trillion stimulus package.
  • Coronavirus fears renew amid fresh headlines from Japan and the UK.
  • COVID-19 bill, pandemic data/updates will be the keys to watch.

While extending its pullback moves from the one-week high, AUD/USD declines to 0.5893, currently around 0.5905, amid the Asian session on Thursday. Although the US policymaker’s nearness to the much-awaited COVID-19 Bill propelled the market’s risk-on tone the previous day, doubts concerning the details weigh on the sentiment off-late. Also exerting downside pressure on the risk could be the coronavirus (COVID-19) updates from the UK and Japan.

The US House Speaker Nancy Pelosi recently challenged the optimism concerning the estimated $2.2 trillion package. The CNN Correspondent relied on the sources to say, “Pelosi is making clear to her members who are disappointed that the pending stimulus bill did not include enough of their priorities that they will have a chance to add those provisions in the fourth package.”

It should also be noted that the recent spike in the UK’s virus numbers as well as worries concerning a likely lockdown in Tokyo, due to the increasing disease, recently seem to weigh on the risk-on tone.

Also to note is the RBA’s Quantitative Easing (QE) operations that recently offered to buy Australian government bonds worth 3 billion Australian dollars that carry maturities ranging from May 2021 to April 2024.

Investors will now look forward to the likely voting on the amendments of the US aid package as well as the coronavirus updates for fresh impulse.

Technical analysis

In addition to the AUD/USD pair’s failure to stay positive above 0.6000, downtick below the 10-day SMA level of 0.5930 also portrays the quote’s underlying weakness.

Additional important levels

Overview
Today last price 0.5902
Today Daily Change -57 pips
Today Daily Change % -0.96%
Today daily open 0.5959
 
Trends
Daily SMA20 0.6265
Daily SMA50 0.6544
Daily SMA100 0.6707
Daily SMA200 0.6779
 
Levels
Previous Daily High 0.6073
Previous Daily Low 0.593
Previous Weekly High 0.6307
Previous Weekly Low 0.5509
Previous Monthly High 0.6775
Previous Monthly Low 0.6434
Daily Fibonacci 38.2% 0.6019
Daily Fibonacci 61.8% 0.5985
Daily Pivot Point S1 0.5902
Daily Pivot Point S2 0.5845
Daily Pivot Point S3 0.5759
Daily Pivot Point R1 0.6044
Daily Pivot Point R2 0.613
Daily Pivot Point R3 0.6187

 

 

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