AUD/USD remains on the defensive, below 0.6900 mark post-US ADP report


  • 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

AUD/USD

Overview
Today last price 0.6885
Today Daily Change -0.0018
Today Daily Change % -0.26
Today daily open 0.6903
 
Trends
Daily SMA20 0.6907
Daily SMA50 0.6676
Daily SMA100 0.6506
Daily SMA200 0.6668
 
Levels
Previous Daily High 0.6913
Previous Daily Low 0.6832
Previous Weekly High 0.6975
Previous Weekly Low 0.6811
Previous Monthly High 0.7065
Previous Monthly Low 0.6648
Daily Fibonacci 38.2% 0.6882
Daily Fibonacci 61.8% 0.6863
Daily Pivot Point S1 0.6852
Daily Pivot Point S2 0.6801
Daily Pivot Point S3 0.677
Daily Pivot Point R1 0.6934
Daily Pivot Point R2 0.6964
Daily Pivot Point R3 0.7015

 

 

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