AUD/USD recovers modestly, trades near 0.6600

AUD/USD opened with a bearish gap on Monday.
US Dollar Index retraces large portion of Friday's drop.
Chicago Fed National Activity Index and Dallas Fed Manufacturing Index coming up.

Eren Sengezer FXStreet

Despite a modest rebound on Friday, the AUD/USD pair registered its lowest close since February 2009 at 0.6628. With coronavirus headlines triggering fresh risk-off flows at the start of the week, the pair opened with a bearish gap and stretched lower to 0.6583 before going into a consolidation phase. As of writing, the pair was trading at 0.6603, erasing 0.37% on a daily basis.

Risk aversion weighs on AUD

The sharp upsurge seen in the number of confirmed coronavirus infections in Italy and South Korea over the weekend reminded investors of the potential negative impact of the epidemic on the global economy.

While speaking at the G20 summit on Saturday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva noted that the epidemic was expected to lower the global growth by 0.1% in 2020.

On the other hand, the sour market mood allows the USD to find demand on Monday to make it difficult for the pair to stage a meaningful recovery.

Ahead of the Chicago Fed National Activity Index and the Dallas Fed Manufacturing Index data, the US Dollar Index is up 0.25% on the day at 99.60. There won't be any macroeconomic data releases from Australia on Tuesday and investors are likely to remain focused on coronavirus headlines.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.6627
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.6627

Trends
Daily SMA20	0.6708
Daily SMA50	0.6827
Daily SMA100	0.6826
Daily SMA200	0.685

Levels
Previous Daily High	0.664
Previous Daily Low	0.6585
Previous Weekly High	0.6734
Previous Weekly Low	0.6585
Previous Monthly High	0.704
Previous Monthly Low	0.6682
Daily Fibonacci 38.2%	0.6619
Daily Fibonacci 61.8%	0.6606
Daily Pivot Point S1	0.6595
Daily Pivot Point S2	0.6562
Daily Pivot Point S3	0.654
Daily Pivot Point R1	0.665
Daily Pivot Point R2	0.6672
Daily Pivot Point R3	0.6705

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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