AUD/USD – Modest Rally Losing Momentum, Focus on US Payrolls

The Australian Dollar grinded higher to finish with mild gains to 0.6916 from 0.6906 yesterday. Overnight trading to begin the third quarter of this year was subdued with the Aussie Battler consolidating within a 0.6877 and 0.6944 range overnight. The Aussie rose to 0.6944 in tandem with the rise in risk appetite due to hopes of a Covid-19 vaccine developed by drug company Pfizer and Germany’s BioNTech. Initial human testing was found to be well-tolerated which was promising. However, there were only 45 participants in the trial. The risk-on mode fizzled out and so did the Aussie.

FXEmpire AUDUSD 3M Chart – 02 July 2020

AUD/USD has immediate resistance at 0.6940 followed by 0.6970 and 0.7000 cents. Immediate support can be found at 0.6900 and 0.6870. The next support level lies at 0.6840. Look for consolidation today with a likely range between 0.6880-0.6940. Prefer to fade any rally in equities and the Aussie as the US struggles to contain the coronavirus outbreak with more postponed reopenings likely.

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