AUD/USD: Sellers attack 0.7350 as coronavirus woes escalate in Australia
- AUD/USD refreshes intraday low, reverses post Fed bounce off weekly bottom.
- Australia’s Import–Export Price Index came in better-than-prior for Q2 2021.
- NSW infections refresh 16 month top, Aussie count rises to fresh high since August 2020.
- US Senators approved debate on infrastructure spending plan, Fed marked dovish tilt.
AUD/USD takes offers around 0.7360, down 0.18% intraday, amid Thursday’s Asian session. In doing so, the Aussie pair refrains from welcoming the second-tier data from home and US stimulus news amid the Delta covid variant fears. It’s worth noting that the quote benefited from the US Federal Reserve’s (Fed) dovish tilt the previous day.
Australia’s Import Price Index grew well beyond 0.2% prior to 1.9% QoQ whereas Export Price Index also crossed 11.2% previous readouts with 13.2% quarterly figures for Q2 2021.
New South Wales (NSW) conveyed 239 new cases for the 24 hours ending on July 28, the highest figures in 16 months, fueling the national number to the August 2020 levels. On the contrary, Victoria marked seven new cases to extend the downward transition since late last week. Though, the positive news was mostly ignored due to the heavy figures from NSW.
It should be noted that the US and the UK also witness a jump in the Delta covid variant of late. The same push Twitter to shut down offices in San Francisco and New York while the UK’s unlock is being questioned again.
On the positive side, US Senators backed President Joe Biden’s infrastructure spending plan during the procedural vote on late Wednesday. However, a long road to success and looming uncertainty over budget limits challenge the optimists.
Against this backdrop, S&P 500 Futures drops 0.17% and the US 10-year Treasury yields print three basis points (bps) of a drop to 1.23% by the press time.
AUD/USD traders may have to wait for the US Q2 GDP’s preliminary reading, up for publishing in today’s US session, for fresh impulse. Until then, covid woes and chatters that RBA will push back tapering concerns may weigh on the quote.
Read: US Q2 GDP Preview: Economy to continue to expand at strong pace, eyes on FOMC
Technical analysis
AUD/USD bears are bracing for the yearly low surrounding 0.7290 on repeated failures to cross the 0.7400 hurdle and a downward sloping trend line from June 11, near 0.7390.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
