Forex Marketz Daily Forex News – Fully Markets Update
Looking at the sentiment linked and commodity Forex pair, the AUD/USD, the Australian dollar has found some support at the one hundred day (100) simple moving average near 0.7642.
During the early Asian trade session, the Australian dollar fell to an intra-session low at 0.7628 before recovering. The greenback remains strong as yields favor the U.S. currency as well as continued tensions between China and the United States over trade.
Also effecting the sentiment linked Australian dollar, is a recent spike in new coronavirus pandemic cases (Covid-19) in Brisbane. This has brought about another lockdown, for three days, in the region to contain the fresh outbreak. This is putting pressure on the AUD/USD currency exchange rate.
There is a fairly light economic calendar in play today. Forex traders were listening to what former Reserve Bank of Australia (RBA) board member John Edwards had to say during an interview with Bloomberg Television. “I think we are heading towards 80 US cent. It’ll be awkward for us if it goes much over 80 U.S. cents and that means that the RBA has got to stay in the bond-buying business for quite a while.”
Also worrying AUD/USD traders, as mentioned above, is ongoing tensions between China and the United States. The U.S. is trying to find regional allies to put pressure on China. There are also continued coronavirus pandemic concerns in the euro area weighing on sentiment.
Daily Australian Dollar Technical Analysis (AUD/USD)
Looking at the above daily MT 4 price action chart, a daily close above the one hundred day simple moving average opens the door to challenge the next upside barrier in play at 0.77. The next upside barrier lines up at 0.7728 with 0.7760 then coming into play.
On the downside, there is a congestion area lining up at 0.7658 to 0.7662. The next layer of technical support lines up at 0.7601 with 0.7568 then coming into focus.
