AUD/USD: Off session high after RBA’s Financial Stability Review


  • AUD/USD snaps three-day winning streak after RBA’s Financial Stability Review (FSR).
  • The bi-annual cited recently high uncertainty to weigh over the banks’ performance and economy.
  • Earlier during the day, comments from the US diplomats kept the risk-tone lighter.
  • US economic docket, virus updates will be observed for fresh impulse.

With the RBA’s FSR highlighting the coronavirus (COVID-19) risk, AUD/USD drops from the session high of 0.6250 to currently down 0.20% around 0.6220 amid Thursday’s Asian session.

The Financial Stability Report (FSR) signaled that the Aussie financial system was strong initially before the virus breakout. The bi-annual report also mentioned, “Heightened uncertainty related to the pandemic is compounding the usual volatility in financial markets.”

Read: RBA’s Financial Stability Review: Financial system was in a strong position heading into virus impacts, faces increased risks

Earlier during the day, upbeat comments from US President Donald Trump, concerning the economic re-start, as well as updates for the COVID-19 clinical trials, helped the risk-tone to extend the previous strength.

That said, the US 10-year Treasury yields drop one basis point (bp) to 0.75% whereas Japan’s NIKKEI marks 0.50% loss to 19,260. Even so, Australia’s ASX 200 remains 1.80% up to 5,300 amid hopes of further stimulus.

Although virus updates are likely to remain as the key catalyst, the US weekly Jobless Claims will also be the key due to its latest jumps based on the virus impact.

Technical analysis

Sellers await a clear break below 21-day SMA figures near 0.6050 for fresh entry while an area comprising March 09 low surrounding 0.6300/10 could restrict short-term recovery moves.

Additional important levels

Overview
Today last price 0.6216
Today Daily Change -14 pips
Today Daily Change % -0.22%
Today daily open 0.623
 
Trends
Daily SMA20 0.6039
Daily SMA50 0.6401
Daily SMA100 0.6635
Daily SMA200 0.6735
 
Levels
Previous Daily High 0.6246
Previous Daily Low 0.6115
Previous Weekly High 0.6214
Previous Weekly Low 0.598
Previous Monthly High 0.6686
Previous Monthly Low 0.5509
Daily Fibonacci 38.2% 0.6196
Daily Fibonacci 61.8% 0.6165
Daily Pivot Point S1 0.6148
Daily Pivot Point S2 0.6066
Daily Pivot Point S3 0.6016
Daily Pivot Point R1 0.6279
Daily Pivot Point R2 0.6329
Daily Pivot Point R3 0.6411

 

 

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