AUD/USD rally halts at 0.6400

Australian dollar’s rebound from 0.6285 finds resistance at 0.6400.
AUD buoyed by higher oil prices and a brighter marked mood.
FX experts warn that a weak post-COVID-19 recovery might weigh on the aussie.

Guillermo Alcala FXStreet

The Australian dollar has posted a steady recovery over the last sessions, buoyed by a brighter market sentiment which has weighed on the safe-haven US dollar. AUD/USD has extended its rebound from Wednesday’s lows at 0.6280, to hit one-week highs at 0.6405 before pulling back to levels right below 0.6400.

The aussie appreciates on a risk-on market

Australia seems to have passed the peak of the COVID-19 virus and looks in a good position to be one of the first countries lifting the restrictions to lead the post-coronavirus recovery. With the rest of the major economies still locked up, this is offering support to the aussie.

On a longer-term, however, the AUD/USD might find some serious challenges. FX experts at ANZ warn that a weak economic recovery might hurt confidence on the AUD: "The global recovery is likely to be slower and shallower than hoped, and solvency is the issue that will come into focus. This will test the markets’ beliefs in central bank omnipotence. A renewed selloff in risk, triggered by solvency rather than liquidity concerns, will be sufficient to drive both the AUD and the NZD to fresh lows."

AUD/USD: capped below 0.6400 resistance

On the technical aspect, immediate resistance area lies at 0.6400 (Intra-day high, April 20 high). Above here, the pair might aim towards 0.6445 (April 14 high) and then 0.6540 (March 11 high). Support levels lie at 0.6280 (April 22 low), 0.6255 (April 21 low) and 0.6195 (April 8 low).

AUD/USD Key levels to watch

AUD/USD

Overview
Today last price	0.6372
Today Daily Change	0.0050
Today Daily Change %	0.79
Today daily open	0.6322

Trends
Daily SMA20	0.623
Daily SMA50	0.6328
Daily SMA100	0.659
Daily SMA200	0.6703

Levels
Previous Daily High	0.6353
Previous Daily Low	0.6275
Previous Weekly High	0.6445
Previous Weekly Low	0.6264
Previous Monthly High	0.6686
Previous Monthly Low	0.5509
Daily Fibonacci 38.2%	0.6323
Daily Fibonacci 61.8%	0.6305
Daily Pivot Point S1	0.6281
Daily Pivot Point S2	0.6239
Daily Pivot Point S3	0.6202
Daily Pivot Point R1	0.6359
Daily Pivot Point R2	0.6395
Daily Pivot Point R3	0.6437

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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