AUD/USD – Firming But 0.70 Cent Cap Remains Solid on Virus Setback

The Australian Dollar is firming but is unable to break convincingly above the 0.7000 cent barrier as the country deals with a second wave of coronavirus infections. On Friday, broad-based US Dollar weakness buoyed the Aussie Battler as the US refused to return to strict lockdowns despite surging Covid-19 cases. Markets are concerned with the longer lasting effects on the US economy.

AUDUSD Intraday Chart - FXStreet - 20 July 2020
AUDUSD Intraday Chart – FXStreet – 20 July 2020

Australia’s two largest states, Victoria and New South Wales are seeing a second wave of coronavirus cases. This morning, the Daily Telegraph reported a fresh outbreak in regional NSW. Six people have tested positive for Covid-19 in Bateman’s Bay in the states south coast. The New South Wales government has urged residents to wear a face mask in public areas, avoid non-essential travel and high-risk venues. The state’s economy can ill afford a return to a partial lockdown.

AUD/USD has immediate resistance at 0.7000 followed by 0.7030. Immediate support can be found at 0.6960 and 0.6930. Expect a corrective move lower to 0.6950 first up. Likely range today will be 0.6920-0.7020. Prefer to sell rallies.

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