AUD/USD Stays On Bullish Track – Is It going to Violate 0.6500?

The AUD/USD pair is flashing green and struggling to hit above the 0.6500 level while taking bids near the 0.6485 level and representing 0.20% gains on the day mainly due to the fresh selling in the U.S. dollar.  The improving risk sentiment in the market also providing support to the Australian dollar an keeps the currency pair bullish. The AUD/USD is trading at 0.6483 and consolidates in the range between the 0.6451 – 0.6492. However, the traders are keenly awaiting the Federal Reserve Chairman Jerome Powell’s speech on economic issues. The greenback looking flat and struggles to gain any meaningful traction by the expectations that the Fed might be required to drive interest rates below zero. However, the expectations for negative Fed rates further bolstered after the U.S. President Donald Trump on Tuesday urged the U.S. central bank to do more policy easing. While the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 99.90 at 2:50 AM ET (0650 GMT). The reason for the risk-on market sentiment could be attributed to the Better-than-expected UK growth numbers. The fresh ease in the Australian-China trade tensions also keeps the market light, with S&P 500 futures turn positive above 2,800 levels.  Moreover, the latest gains in the gold prices and copper prices also contributed to the commodity-currency, the Aussie bullish omentum. Meanwhile, markets digest the in-line with estimates Australian Wage Price Index data released in Asia. Fig 1 – AUDUSD 4H Chart Technically, the AUD/USD

Read More

AUD/USD Heading North – Three White Soldiers In Play!

The AUD/USD pair was closed at 0.64880 after placing a high of 0.65611 and a low of 0.6456. Overall the movement of AUD/USD remained bearish throughout the day. On the back of the risk-on market sentiment, the US dollar gained traction after easing in lockdown from countries across the globe. The fears of the second wave of COVID-19 has kept US dollar higher on Monday. The US dollar index raised more than1% and reached above 100 level on Monday.  The strength of the US dollar weighed on AUD/USD prices on the starting day of the week. However, adding in the downfall of Aussie could also be attributed to a new trade war between China & Australia. In response to this, Scott Morrison, the Australian PM, said on Monday that if the plan of China to impose tariffs on barley imports was connected to the broader diplomatic dispute over the investigation into coronavirus origin, then he would be very disappointed. Besides, the Australian government has signaled that it would take the case to WTO if China would follow the planned duties of around 80% on barley imports. Aussie lost its traction after the increasing tensions between China & Australia. Weakened Aussie dragged down the prices of AUD/USD further to a point near 0.654 level on Monday. Fig 1 – AUDUSD 4H Chart Daily Technical Levels Support Resistance 0.6441      0.6545 0.6396      0.6606 0.6336      0.6650 Pivot Point: 0.6501 Technically, the AUD/USD is trading with a bullish bias,

Read More