Global Sentiment was remained neutral overnight, amid looming uncertainty over the fiscal package, rising virus cases. US equity markets edged higher overnight with the NASDAQ gaining 1.6% and the S&P up +0.8%. On the Commodities front, Brent crude futures rose 0.4% to $43.50, copper gained 0.2%, iron ore fell 2.0% to $107.00, and gold rose 1.8%.
AUD/USD: 0.7120 – 0.7150
AUD/EUR: 0.6081 - 0.6101
EUR/USD: 1.1682 – 1.1781
GBP/USD: 1.2808 – 1.2904
USD/JPY: 105.12 – 105.60
USD/CAD: 1.3354 – 1.3405
NZD/USD: 0.6659 – 0.6692
AUD/JPY: 74.97 – 75.33
AUD/NZD: 1.0675 – 1.0701
- AUD/USD stays on the front foot near the mid-0.7100 area
- US Dollar extends weakness to two-year low amid looming uncertainty over the fiscal package, rising virus cases.
- Wall Street flashed mild gains, Gold surged to record high.
- RBA’s Kent showed readiness to buy bonds to maintain a 0.25% yield target.
Looking forward, a light calendar pushes the pair to stretch the previous bullish bias. However, the buyers seem to step back off-late and may allow the bears’ entry in a case of any USD-positive news. It’s worth mentioning that the RBA’s Assistant Governor Christopher Kent cited odds of further bond purchasing to maintain the 0.25% yield target, which in turn may offer a pullback to the AUD/USD prices.
While 0.7200 becomes the immediate upside target, 0.7210 becomes the validation point for the quote’s run-up towards February 2019 top surrounding 0.7300. Alternatively, Friday’s bottom and June month’s top together offer 0.7065/60 as the key support.
Event Risk Data Today
AU – Weekly Payrolls and Jobs (prior: 0.33%, market f/c: 0.3%)
US – July Consumer Confidence (prior: 0, market f/c: 5)