15th July 2020 - AUD/USD bulls attack 0.6980 following the latest bounce off 0.6961.


Good Morning,

Market Headlines

The rise in virus cases globally didn’t sway investor appetite with risk assets rebounding in a topsie-turvy session overnight seeing the S&P 500 gaining 1% and the Dow Jones up by 2%. For Commodities, Brent crude oil futures rose by 0.2% to $42.80, copper decline by 0.9%, iron ore gained 0.5% to $112.00 (the highest since August 2019), and gold rose 0.4%.

Currencies

US Dollar Index closed 0.2% lower on the day.

EUR ranged between 1.1340 and 1.1409 – a one-month high.

USD/JPY ranged between 107.15 and 107.45.

AUD ranged between 0.6921 and 0.6978.

NZD ranged between 0.6540 and 0.6503

AUD/NZD ranged between 1.0620 and 1.0681.

AUD Thoughts

- AUD/USD bulls attack 0.6980 following the latest bounce off 0.6961.

- Market sentiment remains mixed with equities on the positive side amid better earnings reports, virus woes, Sino-American tussle prevail.

- Second-tier Aussie data can offer immediate direction, risk catalysts to keep the driver’s seat.

Markets will keep eyes on the pandemic updates, Sino-American tension for fresh impulse. Additionally, Australia’s Westpac Consumer Confidence and HIA New Home Sales, for July and May respectively, will also be followed for fresh impetus. While the economics and vaccine news might help the quote to keep 0.7000 on the bulls’ radars, other factors concerning China could question further upside. Unless witnessing a daily close beneath the monthly support line, currently around 0.6925, buyers are less likely to forget attacking 0.7000 mark.

Event Risk Data Today

Australia: COVID headwinds and the partial lockdown in Victoria will hit WBC-MI consumer sentiment in July

India: May exports (market f/c: -$3.5bn).

UK: CPI (market f/c: 0.0%)

Canada: market expects the BoC to keep rates on hold(0.25%).

US: The market forecasting a rise of 1.0% in import prices. July Fed Empire state survey index expected to produce a positive result (market f/c: 10.0). June industrial production will likely indicate a rise in factory output (market f/c: 4.4%).FOMC’s Harker (02:00 AEST) and Logan (03:30 AEST) will speak before the Federal Reserve’s Beige book is released (04:00 AEST).

ACN: 615 699 888 | AFSL : 502711

Copyright © Navigate Global Payments All rights reserved.