AUD/USD: Range bound below 0.6000 amid mixed sentiment


  • AUD/USD struggles for direction after the pullback from the weekly top.
  • US dollar recovers earlier losses amid a lack of major catalysts, coronavirus fears.
  • Details about voting on COVID-19 Bill, US Jobless Claims and GDP will be the key.

AUD/USD has been trading in a small range between 0.5980 and 0.5950, currently around 0.5955, since the last few hours to the start of Thursday’s Asian session. That said, the pair slipped from the seven-day top of 0.6073 to 0.5930 during Wednesday’s US session.

The Aussie pair’s lack of momentum could be traced from the mixed bag of the latest catalysts as well as the light economic calendar.

While the US policymakers’ agreement on a $2 trillion aid package trimmed the US dollar’s safe-haven demand, coronavirus fears continue to keep the greenback on the front row of the buyers’ list.

News of multiple economies on the complete lockdown and the rising numbers of the pandemic keep exerting downside pressure on the market’s risk-on tone. However, the recent improvements in Italy, preceded by China, could be cited for a small relief.

Even so, Australia is struggling with the virus and trying hard steps to tame it. In the latest update, the New State Premier said he will not allow any passenger off cruise ships in Sydney unless new protocols are followed.

On the trade side, the Trump administration is considering a 90-day deferral for the tariffs on the global trade partners. Additionally, the US Department of Commerce recently postponed the public comment period for input on Huawei temporary general license extensions.

Amid all these, the market sentiment remains mostly upbeat with Wall Street posting the second day of gains while the US 10-year treasury yields also marking gains to 0.87% by the end of Wednesday.

Having gone through initial details of the $2 trillion COVID-19 Bill from the US, investors look forward to the Senate’s voting on the same, expectedly on Friday. However, the US weekly Jobless Claims, expected 1000K versus 281K prior as well as the fourth quarter (Q4) GDP, forecast to remain unchanged at 2.1%, will also be important to watch.

Technical Analysis

Despite failing to cross the mid-month low near 0.6080, the AUD/USD prices are above the 10-day SMA level of 0.5930, which in turn portrays the pair’s short-term strength.

Additional important levels

Overview
Today last price 0.5956
Today Daily Change -2 pips
Today Daily Change % -0.03%
Today daily open 0.5958
 
Trends
Daily SMA20 0.6294
Daily SMA50 0.6563
Daily SMA100 0.6716
Daily SMA200 0.6783
 
Levels
Previous Daily High 0.5976
Previous Daily Low 0.5806
Previous Weekly High 0.6307
Previous Weekly Low 0.5509
Previous Monthly High 0.6775
Previous Monthly Low 0.6434
Daily Fibonacci 38.2% 0.5911
Daily Fibonacci 61.8% 0.5871
Daily Pivot Point S1 0.585
Daily Pivot Point S2 0.5743
Daily Pivot Point S3 0.568
Daily Pivot Point R1 0.602
Daily Pivot Point R2 0.6083
Daily Pivot Point R3 0.619

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.

AUD/USD News

GBP/USD falls toward 1.2200 as UK PM Johnson’s health worsens

Rumors about UK PM Johnson’s health sounded loud since yesterday, now confirmed as the Prime Minister has been taken to intensive care. PM Johnson has been diagnosed coronavirus 10 days ago.

GBP/USD News

USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.

USD/JPY News

Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI fragility amid OPEC+ delays

The price of oil has been under some pressure in recent trade considering the delays to the OPEC meeting which had been scheduled for Monday but put back until Thursday. Markets are otherwise enjoying some recovery amid signs of a slow down in COVID-19 contagion. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures