AUD/USD slips below 0.7200 as Aussie PM speaks dovish

AUD/USD drops to 0.7197, intraday high of 0.7214, during early Thursday. Even so, the quote prints gain for the third day in a row after Wednesday’s run-up to refresh an 18-month top with 0.7241. Global markets cheer US dollar weakness, coupled with hopes of further stimulus, to propel the risk barometers. However, the recently downbeat comments from Australia’s PM Scott Morrison weigh on the quote.

The American Congress members have recently turned upbeat as they near the August vacation, starting from this weekend. While the House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnel portray the diplomats’ rush towards a decision, US President Donald Trump stays ready to use executive orders if Democrats keep stopping the deal.

On the other hand, Australian Health Minister Greg Hunt turns down the early-day chatters citing a study that signals more than 1,100 cases and a longer peak of the coronavirus (COVID-19). Recently, Australian PM Scott Morrison crossed wires while speaking on cybersecurity. The national leader highlighted the need for strong mental health as new lockdowns would be taking a toll on Victorians.  Mr. Morisson further said that the unemployment rate s expected to peak at about 10% while also citing Treasury estimates saying, Victoria's stage 4 lockdown would reduce the size of the economy in the September quarter by between $7 billion to $9 billion.”

While the official figures of the new cases are yet to be published, ABC anticipates around 471 cases versus 741 prior.

Elsewhere, the US secretary of state Mike Pompeo keeps criticizing China and warns American citizens to exercise increased caution concerning travel in or to China.

Against this backdrop, S&P 500 Futures rise over 0.30% while Australia’s ASX 200 gains 0.60%.

Traders will keep eyes on the risk catalysts like US stimulus headlines and COVID-19 news for fresh impetus amid a lack of major data/events ahead of the American session.

Technical analysis

Unless breaking 0.7110-0.7095 region comprising 10-day EMA and a rising trend line from May 22 bulls can keep targeting the early 2019 top near 0.7300.