- AUD/USD nurses losses after risk-off flows extend into Asia.
- US dollar draws haven-demand on COVID-19, US political woes.
- Focus remains on virus stats, US PPI for next direction.
Following a brief consolidative stint seen in the overnight trade, AUD/USD resumed its decline and fell as low as 0.6936 in the last hour before recovering to 0.6950 level. Despite the rebound, the spot loses 0.21% on the day.
The aussie licks wound after sellers took over and throttled the risk assets such as stocks, yields, oil and Antipodeans amid a fresh risk-aversion wave. The persistent rise in the coronavirus cases in the US states pour cold water on the expectations of a V-shaped economic recovery.
Further, the US pollical uncertainty is raising its ugly head before the Nov presidential election, in light of the Supreme Court throwing out rulings allowing the House to access President Donald Trump’s financial records.
This was the main catalyst that knocked-off the risk sentiment in the US last session, with the US equities tumbling while boosting the safe-haven US currency.
Markets also remain wary over the looming US-China trade risks and souring Australian-China diplomatic relations over the Hong Kong issue, which could likely keep aussie’s recovery attempt in check.
Next of relevance remains the US Producer Price Index (PPI) and fresh coronavirus updates for fresh cues on the global market sentiment, eventually impacting the major.
AUD/USD technical levels
The immediate support is seen at 0.6936 (daily low/ 10-DMA), below which the 20-DMA at 0.6910 will be tested. On the flip side, the recovery will likely face stiff hurdle at 0.6962/70 (5-DMA/ daily pivot point). The next resistance is aligned at 0.7000 (round figure).
AUD/USD additional levels
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
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD regains 1.2350 ahead of UK PMIs
GBP/USD is recovering ground above 1.2350 in the European session, as the US Dollar comes under fresh selling pressure on improving risk sentiment. The further upside in the pair could be capped, as traders await the UK PMI reports for fresh trading impetus.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.