AUD/USD stays depressed below 0.6600 after RBA’s Lowe


  • AUD/USD ignores upbeat comments from RBA’s Lowe, extends pullback from 10-week top.
  • Risk-tone sours amid fresh US-China tussle, virus worries.
  • US preliminary PMIs, Jobless Claims can decorate the calendar.

AUD/USD stays offered, refreshes intraday low to 0.6551, down 0.70% on a day, after RBA Governor’s comments on early Thursday. Even if the Aussie central bank governor Philip Lowe tried to paint a rosy picture of the Australian economy, a close look at the comments suggest further expansion of the RBA's Quantitative Easing (QE). As a result, the pair extends previous fall that mainly focused on the US dollar pullback and fresh risk-off sentiment amid trade/virus woes.

Read: RBA’s Lowe: Australian financial system is resilient and is well placed to deal with COVID-19

Fears of coronavirus resurgence have taken a toll on the risk-tone as China’s second wave and latest global virus data suggest the worst isn’t over. The updates also pour cold water on the face of optimism surrounding the economic restart.

Also weighing on the trading sentiment are the latest tweets from US President Donald Trump, not to forget the early-Asian news from Washington Post, that signals intensified tension between the US and China.

Furthermore, the Aussie-China tussle is still not solved even if the Global Times signaled positive indicators in its latest piece.

Amid all these, the US dollar index (DXY), a gauge of the greenback versus the major currencies, recovers from 14-day low and adds extra burden on the pair.

That said, US 10-year Treasury yields drop 1.7% to 0.662% whereas stocks in Asia-Pacific and S&P 500 Futures also register mild losses below 1.0% by the time of writing.

Even if the trade/virus updates are back in focus, preliminary readings of the US May month PMIs and the weekly Jobless Claims will also be important to watch during the rest of the day. It should also be noted that the RBA’s Assistant Governor Guy Debelle is also up for speaking during the day and will be followed for fresh impulse.

Technical analysis

Failures to refresh multi-day high above 0.6665 direct the Aussie pair towards 100-day SMA retest, near 0.6500 now. Also acting as an upside barrier is the March month top surrounding 0.6685/90 and 0.6700 round-figure.

Additional important levels

Overview
Today last price 0.6558
Today Daily Change -40 pips
Today Daily Change % -0.61%
Today daily open 0.6598
 
Trends
Daily SMA20 0.6472
Daily SMA50 0.6273
Daily SMA100 0.6503
Daily SMA200 0.6663
 
Levels
Previous Daily High 0.6617
Previous Daily Low 0.6524
Previous Weekly High 0.6562
Previous Weekly Low 0.6401
Previous Monthly High 0.657
Previous Monthly Low 0.598
Daily Fibonacci 38.2% 0.6581
Daily Fibonacci 61.8% 0.656
Daily Pivot Point S1 0.6542
Daily Pivot Point S2 0.6487
Daily Pivot Point S3 0.6449
Daily Pivot Point R1 0.6635
Daily Pivot Point R2 0.6673
Daily Pivot Point R3 0.6728

 

 

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