AUD/USD teases yearly bottom near 0.7460 on Aussie covid updates, pre-NFP anxiety


  • AUD/USD bounces off intraday low, nears the yearly trough during five-day downtrend.
  • PM Morrison said that the cabinet agreed over covid unlock pathway.
  • NSW reports 31 new locally acquired cases, Queensland to ease lockdown in some parts.
  • IMF expects Fed tapering to start from H1 2022

AUD/USD stays pressured around 0.7465-60, down 0.07%, amid the fifth day of declines during early Friday. In doing so, the Aussie pair remains pressured around the lowest since early December 2021 amid the coronavirus (COVID-19) woes in Australia and the market’s cautious mood ahead of the US Nonfarm Payrolls (NFP).

Although Queensland is up for easing some virus-led restrictions in parts of the state, “Lockdown will continue for 24 hours in Brisbane LGA and Moreton Bay LGA,” per ABC news. Additionally, New South Wales (NSW) reports an increase in local infections while reversing the previous day’s pullback for now.

Considering this Australia PM Scott Morrison said, “National Cabinet has agreed on a new pathway out of COVID-19.” The Aussie leader also signaled that the lockdowns will be the last resort in the current phase. The details of which seem more elusive as the country awaits more encouragement amid the tough time. Hence, AUD/USD pays no heed to the update.

It should, however, be noted that the latest updates from the ABC news mark an 8.0% fully vaccinated Aussies versus the 4.0% figures during the early week. Even so, the national leaders keep jostling over the AstraZeneca jabs as the center rejects the usage due to the blood clotting issues.

Elsewhere, the US dollar remains firm near the three-month top, flashed the previous day, as traders seek solace in greenback amid fears of Fed rate hike and strong US data. Also backing the USD could be the comments from the International Monetary Fund (IMF). The global institute recently said, “The Federal Reserve probably will need to begin raising interest rates in late 2022 or early 2023 as increased government spending keeps inflation above its long-run average target.”

Amid these plays, S&P 500 Futures seesaws around the record top while the US 10-year Treasury yield drops 1.6 basis points (bps) to 1.464% by the press time. Additionally, markets in Asia-Pacific trade mixed.

Moving on, covid updates may offer intermediate moves to the AUD/USD prices while major attention will be given to the US NFP, expected 690K versus 559K prior. It’s worth noting that a strong outcome may push the Fed closer towards the much-awaited monetary policy adjustment and may help the USD to add more gains.

Technical analysis

Failures to bounce previous seven-month low of 0.7477 direct AUD/USD bears towards August 2020 tops near 0.7415. Alternatively, a clear upside break of the 0.7477 immediate hurdle will attack the 0.7500 threshold and 200-SMA near 0.7570 to justify the corrective pullback.

Additional important levels

Overview
Today last price 0.7462
Today Daily Change -0.0008
Today Daily Change % -0.11%
Today daily open 0.747
 
Trends
Daily SMA20 0.7617
Daily SMA50 0.7701
Daily SMA100 0.7712
Daily SMA200 0.7569
 
Levels
Previous Daily High 0.7508
Previous Daily Low 0.746
Previous Weekly High 0.7617
Previous Weekly Low 0.7477
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.7478
Daily Fibonacci 61.8% 0.749
Daily Pivot Point S1 0.745
Daily Pivot Point S2 0.7431
Daily Pivot Point S3 0.7402
Daily Pivot Point R1 0.7499
Daily Pivot Point R2 0.7528
Daily Pivot Point R3 0.7547

 

 

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