AUD/USD extends recovery beyond 0.6350 ahead of China data dump


  • AUD/USD benefits from the recent recovery in risks.
  • Gilead’s remdesivir is getting noticeable success in clinical trials.
  • US dollar strength, risk-off dominated market mood earlier.
  • China's data, mainly the GDP, will be the key to watch while virus updates could keep markets entertained.

AUD/USD cheers the success of Gilead’s remdesivir clinical trials while rising to 0.6365, up 0.60% on a day, during the early Friday morning in Asia. In doing so, the Aussie pair bucks the previous day’s downbeat performance, portrayed mainly due to the broad US dollar strength and risk-off, while waiting for China’s key data.

Following the CNBC news suggesting the Gilead Life Science’s remdesivir is getting a huge success ratio during the clinical trials, markets dumped the previous risk-off with the S&P 500 ETF surging 2.0%.

Earlier, Wall Street managed to avoid losses with US President Donald Trump pushing for the phased re-open of the economy but the Treasury yields remain on the back foot amid worries concerning the coronavirus (COVID-19) crisis.

The pandemic issue remains center to market performance as there have been more than two million confirmed cases and the US death toll nears 31,000. This pushes New York to extend the lockdown, with Japan also announcing national emergency, but Switzerland bucks the trend to cite the restrictions’ exit measures. On Thursday, Aussie PM Scott Morrison also signaled for an exit strategy but also said, “need to be prepared for very sobering economic news in the months ahead.”

While the recent updates concerning the cure are likely to help the Aussie pair, major attention will be on China’s first quarter (Q1) GDP and March month Industrial Production, coupled with Retail Sales, figures. Although forecasts suggest downbeat figures for each of the key economic indicators, outcomes from the dragon nation have recently surprised markets. Hence, any such repetition of the surprises could offer an additional boost to the present risk reset, also propelling the Aussie quote.

Technical analysis

Failure to provide a sustained break below the monthly support-line, currently at 0.6315, pushes the pair towards confronting a 50-day SMA level of 0.6365. Though, 0.6400 and Wednesday’s high near 0.6445 hold the gate for further upside. Alternatively, downside below 0.6315 could revisit the March-end top near 0.6215/10.

Additional important levels

Overview
Today last price 0.6358
Today Daily Change 39 pips
Today Daily Change % 0.62%
Today daily open 0.6319
 
Trends
Daily SMA20 0.6113
Daily SMA50 0.6366
Daily SMA100 0.6614
Daily SMA200 0.672
 
Levels
Previous Daily High 0.6444
Previous Daily Low 0.6284
Previous Weekly High 0.6369
Previous Weekly Low 0.5991
Previous Monthly High 0.6686
Previous Monthly Low 0.5509
Daily Fibonacci 38.2% 0.6345
Daily Fibonacci 61.8% 0.6383
Daily Pivot Point S1 0.6254
Daily Pivot Point S2 0.6188
Daily Pivot Point S3 0.6093
Daily Pivot Point R1 0.6414
Daily Pivot Point R2 0.6509
Daily Pivot Point R3 0.6575

 

 

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