- AUD/USD struggled to preserve early modest gains beyond the 0.6900 mark, or one-week tops.
- Concerns over rising COVID-19 cases benefitted the safe-haven USD and exerted some pressure.
- The USD maintained its bid tone following the release of the ADP report on private-sector employment.
The AUD/USD pair held on to its mildly weaker tone near session lows, around the 0.6890-85 region, and moved little following the release of the US ADP report.
The pair failed to capitalize on its early uptick to the 0.6920 region, or one-week tops, instead met with some fresh supply and eroded a part of the previous day's positive move. The pullback was exclusively driven by a modest pickup in the US dollar demand amid a fresh leg down in the equity markets.
Investors remain concerned that the second wave of coronavirus infections across the world could trigger renewed lockdown measures and delay the global economic recovery. This, in turn, weighed on investors sentiment and boosted the greenback's relative safe-haven status against its Australian counterpart.
The USD maintained its bid tone and had a rather muted reaction to softer ADP, which showed that private-sector employment rose by 2369K in June as compared to 3000K expected. The disappointment, to a larger extent, was negated by an upward revision of the previous month's reading to +3065K as against -2760K reported earlier.
Wednesday's US economic docket also features the release of ISM Manufacturing PMI and will be followed by minutes of the latest FOMC monetary policy meeting. This will play a key role in influence the USD price dynamics and produce some meaningful trading opportunities around the AUD/USD pair.
Technical levels to watch
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
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold flirts with record highs above $2,230, all eyes on US PCE data
Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.
Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.