AUD/USD seesaws around 0.6600 as coronavirus fears persist


  • AUD/USD fails to hold onto the latest losses, recovers modestly.
  • Market players continue their rush to risk-safety and seek solace in the US dollar amid upbeat US data.
  • No major data/events from Australia/China keep traders searching for more coronavirus headlines for fresh impulse.

AUD/USD remains nearly unchanged while taking rounds to 0.6600 at the start of Tuesday’s Asian session. The Aussie pair gapped down at the week’s start on coronavirus (COVID-19) fears while weakened on the US dollar recovery afterward. Though, a lack of major updates from home seems to limit the pair’s immediate moves.

Coronavirus spreads outside China but is not a pandemic…

While the coronavirus outbreak in Italy and South Korea propelled risk-off at the beginning of Monday’s trading, the World Health Organization (WHO) tweeted that the COVID-19 peaked between the end of January and early February. Also increasing the ray of hope were declining emergency levels in many Chinese provinces as well as comments from the Federal Reserve Bank of Cleveland President Loretta Mester. The Fed Chief clearly mentioned that Monday’s market reaction is “one day” while also mentioning that her business contacts don’t say any downturn in demand due to the Chinese disease.

Even so, risk-off continues as Italian PM Conte said that he could see a virus having a strong impact on the Italian economy.

Also negatively affecting the market’s trade sentiment were the fears of worsening the US-China relations. While neither party anticipating any deviation from the phase-one terms due to the coronavirus, China’s issuance of force majeure certificates to more than 3,000 firms indicate other things. Additionally, Beijing's extradition of US journalists over the article that was cited as racist is likely to grab a bitter response from the Trump administration.

That said, the US equity benchmarks marked noticeable losses while the 30-year bond yields from the world’s largest economy refreshed record lows. The S&P 500 Futures is down 3.38% to 3,226 by the press time.

The US dollar recovery adds to the burden…

In addition to the risk-off moves, the USD recovery also weighed down the AUD/USD pair. While broadly positive fundamentals continued to push the market players towards the greenback in times of uncertainty, improvements in the Chicago Fed National Activity Index and the US Dallas Fed Manufacturing Index further strengthened the US dollar.

Looking forward, a lack of major data in Australia and China during this week could keep coronavirus headlines in the driver’s seat.

Technical Analysis

AUD/USD is likely to witness a pullback amid oversold RSI and repeated failures to dip further below 0.6600 key support. In doing so, 0.6620/22 could be on the buyers' radar, based on the Technical Confluence Indicator. However, the pair’s downside below 0.6600 might not refrain to challenge 0.6572 key support.

Additional important levels

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

 

 

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 remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures