AUD/USD retreats towards 0.73 as Aussie covid infections refresh 10-month high


  • AUD/USD drops back towards yearly low, rejects the previous day’s rebound.
  • Risk-on mood fades as Australia registers most daily virus cases since September 2020.
  • US Pres. Biden stays optimistic even as Senators pushed back infrastructure spending debate to Monday.
  • ECB, second-tier US data in the spotlight, qualitative factors are the key.

AUD/USD remains pressured around intraday low, down 0.18% on a day near 0.7345, amid Thursday’s Asian session. In doing so, the Aussie pair reverses Wednesday’s recovery moves from the yearly low as the coronavirus (COVID-19) infections jump in Australia.

Australia’s New South Wales (NSW) record the highest daily covid infections, 122, since the current outbreak began in June. The same propels the national count to 152 by the press time, the highest in 10 months. This pushes NSW Premier Gladys Berejiklian to say, per the ABC News, “Many of those found to have been infectious in the community were buying groceries, going to the pharmacist and undertaking critical work.”

On the other hand, the UK reported a slightly higher daily count, 44,104 versus 42,302 the previous Wednesday, but a 50% weekly jump in the death toll to 73 keeps highlighting the Delta covid variant fears.

It’s worth noting though that US President Joe Biden’s optimism over infrastructure spending passage, despite Senators’ rejection to the opening debate, joins upbeat Wall Street performance to challenge the bears. The US equities rose for the second consecutive day on Wednesday amid strong earnings.

Talking about data, National Australia Bank’s (NAB) Business Confidence for the second quarter (Q2) eased below 21 market consensus to 17, versus 19 revised prior. Further, the preliminey trade figures for June showed a record surplus of Australia dollar (AUD) 13.3 billion with the 8% jump in Exports of goods and Imports of godds each.

Amid these plays, the US Dollar Index (DXY) regains upside momentum after stepping back from the three-month high on Wednesday, which in turn keeps AUD/USD sellers hopeful.

Considering the lack of major data/events ahead of the US session, AUD/USD traders may keep taking clues from the covid conditions at home and please the bears. However, pre-ECB trading lull and mixed concerns over stimulus may challenge the pair’s further downside.

Technical analysis

Until staying below 0.7410-15 horizontal area comprising August–September 2020 tops and early July lows, AUD/USD bears stay directed towards October high of 0.7244.

Additional important levels

Overview
Today last price 0.7344
Today Daily Change -0.0015
Today Daily Change % -0.20%
Today daily open 0.7359
 
Trends
Daily SMA20 0.7472
Daily SMA50 0.7609
Daily SMA100 0.766
Daily SMA200 0.7589
 
Levels
Previous Daily High 0.7363
Previous Daily Low 0.7288
Previous Weekly High 0.7504
Previous Weekly Low 0.7391
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7335
Daily Fibonacci 61.8% 0.7317
Daily Pivot Point S1 0.7311
Daily Pivot Point S2 0.7262
Daily Pivot Point S3 0.7236
Daily Pivot Point R1 0.7385
Daily Pivot Point R2 0.7411
Daily Pivot Point R3 0.746

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Portrays bearish set-up on D1 below 1.1900

EUR/USD edges lower around 1.1870 amid a quiet start to the week’s Asian session trading on Monday. The major currency pair snapped a four-day uptrend on Friday, posting the bearish spinning top candlestick.

EUR/USD News

GBP/USD: Bears brace for 200-SMA retest

GBP/USD begins the trading week on lower ground near 1.3900. The cable pair broke a short-term rising channel during the late Friday and teased bears amid a downward sloping Momentum line. The selling currently aims to retest the 200-SMA support near 1.3835, a break of which could highlight the 1.3770 area comprising multiple levels marked last week.

GBP/USD News

Gold bulls hesitate as focus shift to NFP

After closing the previous week in the negative territory, gold stayed on the back foot on Monday and dropped below $1,800. However, the subdued market action ahead of key macroeconomic events allowed the precious metal to stay in a consolidation phase on Tuesday.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

Challenging week ahead

Three macro considerations are shaping the investment climate: the evolution of the virus and the response, the timeframe of the Fed's tapering, and China's broad regulatory crackdown. Beijing's new policy initiatives are broader and quicker than generally anticipated.

Read more

Forex MAJORS

Cryptocurrencies

Signatures