AUD/USD: growth amid correction of the US dollar
Current trend
Due to USD decline, the AUD/USD pair corrects, trading at the level of 0.7299.
A new wave of the coronavirus pandemic in Australia is intensifying. Still, now the main focus of infection is not the capital region but the state of New South Wales, in which 1035 new cases of infection were detected over the past day. As economic statistics show, activity indicators are reacting negatively to the current situation: Retail Sales decreased by 2.7%, although the decline was 1.8% a month ago. The dynamics will accelerate in August, and AUD will leave the positive trend.
Meanwhile, USD expectedly declines after the Head of the US Federal Reserve, Jerome Powell, disappointed the markets, again avoiding a direct answer about the timing of the withdrawal of the quantitative easing (QE) program. The official said that the department is closely monitoring the spread of the coronavirus pandemic in the country and is ready to take appropriate measures to wind down in the event of QE as soon as necessary. Investors, who expected an imminent refusal to buy back assets, began to liquidate long USD positions, which led to its decline.
Support and resistance
Globally, the price falls within the Head and shoulders pattern. Technical indicators remain in the sell state: the fluctuation range of the Alligator EMA slightly narrows, and the AO histogram moves below the zero line, reflecting a correction.
Resistance levels: 0.7405, 0.7570.
Support levels: 0.7235, 0.7115.
Due to USD decline, the AUD/USD pair corrects, trading at the level of 0.7299.
A new wave of the coronavirus pandemic in Australia is intensifying. Still, now the main focus of infection is not the capital region but the state of New South Wales, in which 1035 new cases of infection were detected over the past day. As economic statistics show, activity indicators are reacting negatively to the current situation: Retail Sales decreased by 2.7%, although the decline was 1.8% a month ago. The dynamics will accelerate in August, and AUD will leave the positive trend.
Meanwhile, USD expectedly declines after the Head of the US Federal Reserve, Jerome Powell, disappointed the markets, again avoiding a direct answer about the timing of the withdrawal of the quantitative easing (QE) program. The official said that the department is closely monitoring the spread of the coronavirus pandemic in the country and is ready to take appropriate measures to wind down in the event of QE as soon as necessary. Investors, who expected an imminent refusal to buy back assets, began to liquidate long USD positions, which led to its decline.
Support and resistance
Globally, the price falls within the Head and shoulders pattern. Technical indicators remain in the sell state: the fluctuation range of the Alligator EMA slightly narrows, and the AO histogram moves below the zero line, reflecting a correction.
Resistance levels: 0.7405, 0.7570.
Support levels: 0.7235, 0.7115.