20th August 2020 - AUD/USD: Depressed below 0.7200 after printing the biggest losses in two weeks


Good Morning,

Market Headlines

The US dollar and bond yields rose before and after the minutes of the US central bank’s July meeting, the signals less dovish than expected. US equities earlier nudged to fresh record highs but the S&P500 is now down 0.4%. Commodities, Brent oil futures fell 0.5% to $45.25, copper rose 0.6% to a high since June 2018, iron ore rose 0.8% to $129.65 – a fresh high since 2014, and gold fell 3.0%

Currencies

AUD/USD: 0.7180 – 0.7275

EUR/USD: 1.1830 – 1.1951

GBP/USD: 1.3095 – 1.3263

USD/JPY: 105.18 – 106.08

USD/CAD: 1.3134 – 1.3217

NZD/USD: 0.6560 – 0.6652

AUD/JPY: 76.12 – 76.67

AUD/NZD: 1.0932 – 1.0962

AUD Thoughts

- AUD/USD remains on the back foot near 10-day SMA after taking a U-turn from the yearly high.

- US dollar index bounced back from 27 month low and surprised markets with a little backup.

- The receding cases in New York and Florida, FOMC minutes and short-covering were called for as reasons.

- No major data/events will keep qualitative risk catalysts in the driver’s seat.

Despite the failure to cross 2019 top surrounding 0.7300, AUD/USD prices are yet to break a 10-day SMA level of 0.7180 and a monthly support line near 0.7130, which in turn keeps bulls less carried away with the latest fall.

Event Risk Data Today

EU – ECB meeting minutes

US – weekly jobless claims

US – Philly Fed survey

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