- AUD/USD refreshes intraday low, snaps two-day recovery moves.
- Virus infections ease from multi-day top but policymakers stay concerned.
- Stock futures, US Treasury yields both portray risk-off mood.
- US GDP backed Fed’s refrain to discuss tapering, Core PCE Price Index eyed.
AUD/USD teases intraday low of 0.7384, down 0.10% on a day, amid Friday’s Asian session. In doing so, the Aussie pair drops for the first time in three days as market sentiment sours amid the coronavirus concerns.
Although New South Wales (NSW) posted softer-than-previous daily infections, 172 versus 240, Aussie diplomats are worried over the Delta covid variant’s latest spread as the national tall stays around highest since August 2020. Also challenging the Australian policymakers is the public outrage versus the virus-led activity restrictions, which in turn pushed the NSW police to say, per ABC News, “Don't come into Sydney tomorrow to protest.”
On a different page, US President Joe Biden pushed for vaccination to the White House staff or welcome routine tests after the US marked the biggest one-day increase in cases since February. Further, Japan witnesses above 10,000 cases for the first time and stays ready to take more prefectures under virus-led emergency whereas the UK’s daily count of the COVID-19 eases but the seven-day average jumps 22%.
While the covid fears weigh on the market’s mood and put a safe-haven bid under the US dollar, downbeat data and stimulus optimism restrict the greenback’s latest bounce. The preliminary reading of the US Q2 GDP figures eased below 8.5% market consensus to 6.5% QoQ, versus 6.4% prior. However, the consumer spending details remain robust and suggest economic recovery. In addition to the GDP, upbeat weekly Jobless Claims and further softening of the housing data also convinced market players of further easy-money policies from the Fed.
Additionally challenging the market bears are the updates over the US President Biden’s infrastructure spending talks in the Senate. “The U.S. Senate on Thursday prepared to tackle the details of a $1 trillion bipartisan infrastructure bill backed by President Joe Biden, with the possibility of weekend work looming after lawmakers agreed to advance the measure,” said Reuters.
It’s worth noting that Australia’s Q2 Producer Price Index (PPI) rose past 0.2% forecast and 0.4% prior to 0.7% QoQ whereas the Private Sector Credit for June also crossed 0.1% expectations and 0.4% previous readouts to 0.9% MoM.
Amid these plays, S&P 500 Futures drop over 0.6% whereas the US 10-year Treasury yields slip 1.8 basis points (bps) to 1.25% by the press time.
Given the risk-off mood, upbeat Aussie data may not help the AUD/USD regain upside momentum. However, US Core Personal Consumption Expenditure Price Index for June, expected 3.7% YoY versus 3.4% prior, will be the key to follow.
Failures to provide a daily closing beyond a one-month-old resistance line, near 0.7390, not to forget pullback from the 0.7400 threshold, keep AUD/USD sellers hopeful. Even if the quote crosses the 0.7400 round figure, the pair buyers remain cautious until witnessing a daily close beyond the 200-DMA level of 0.7600.
Additional important levels
|Today last price||0.738|
|Today Daily Change||-0.0014|
|Today Daily Change %||-0.19%|
|Today daily open||0.7394|
|Previous Daily High||0.7415|
|Previous Daily Low||0.7358|
|Previous Weekly High||0.7417|
|Previous Weekly Low||0.7288|
|Previous Monthly High||0.7794|
|Previous Monthly Low||0.7477|
|Daily Fibonacci 38.2%||0.7393|
|Daily Fibonacci 61.8%||0.738|
|Daily Pivot Point S1||0.7364|
|Daily Pivot Point S2||0.7333|
|Daily Pivot Point S3||0.7307|
|Daily Pivot Point R1||0.742|
|Daily Pivot Point R2||0.7446|
|Daily Pivot Point R3||0.7477|
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.