The AUD/USD currency pair failed to keep its Asian session bullish momentum and dropped below the 0.7270 level despite the welcome prints of second-tier Aussie data and weaker U.S. dollar. As we know, these factors initially gave support to the currency pair, but unfortunately, the currency pair failed to keep its bullish momentum into the European session. However, the reason for the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China, which leads to the decline in U.S. stock’s future. In turn, this undermined the perceived risk currency Australian dollar and contributed to the currency pair losses.
The U.S. stock futures failed to keep its Asian session positive tone and trimmed its previous gains, possibly due to the renewed conflict between the U.S. and China. On the contrary, the investors continued to cheer the hopes over a possible vaccine and treatment for the highly infectious coronavirus. These hopes came after the comments from Goldman Sachs that the Pfizer’s candidate vaccine could be approved as early as October. Also supporting the market tone was the news that Tokyo will ease its coronavirus (COVID-19)-led lockdown restrictions by one notch. This might help the currency pair to limit its deeper losses.
As in result, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day. Furthermore, the U.S. dollar losses could also be associated with the cautious sentiment ahead of the European Central Bank (ECB) meeting taking place later in the day. However, the U.S. dollar losses become the key factors that capped further downside momentum in the currency pair.
Moving ahead, the market traders will keep their eyes on the European Central Bank (ECB) decision and headlines from London for intermediate moves ahead of 16:30 GMT speech by BOC’s Macklem. Furthermore, the U.S. Initial Jobless Claims’ weekly release, which is expected 846K versus 881K prior, will also be key to watch. In the meantime, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the currency pair.
The AUD/USD pair is trading slightly bullish in the wake of retracement at 0.7225 level. The AUD/USD pair may find immediate support around 0.7190 level, and violation of this level can open further room for selling until the 0.7139 level. On the higher side, the AUD/USD may find resistance at 0.7249 level, and above this, the next resistance can be found around 0.7301 level.
The AUD/USD pair is trading slightly bullish in the wake of retracement at 0.7225 level. The AUD/USD pair may find immediate support around 0.7190 level, and violation of this level can open further room for selling until the 0.7139 level. On the higher side, the AUD/USD may find resistance at 0.7249 level, and above this the next resistance can be found around 0.7301 level.
Entry Price – Buy 0.72957
Stop Loss – 0.72557
Take Profit – 0.73357
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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