Wall Street managed to please the bulls, backed by tech-shares, whereas the US 10-year treasury yields stood depressed near 0.65% by the end of Friday. Commodities, Brent crude oil futures closed unchanged at $41.90, copper rose 0.1%, iron ore rose slightly to $115.90, and gold fell 0.2%.
AUD/USD: 0.7006 – 0.7087
EUR/USD: 1.1613 – 1.1685
GBP/USD: 1.2688 – 1.2805
USD/JPY: 105.25 – 105.70
USD/CAD: 1.3340 – 1.3418
NZD/USD: 0.6528 – 0.6593
AUD/JPY: 74.03 – 74.62
AUD/NZD: 1.0718 – 1.0759
- AUD/USD consolidates biggest weekly losses in six months above 0.7000
- Increased expectations of American stimulus, recovery in technology shares and vaccine hopes signal light at the end of the tunnel.
- A light calendar keeps risk catalysts on the driver’s seat, traders may look for bright spots to extend the latest bounce.
Considering the absence of any strong clues that could renew hopes of economic recovery amid the virus woes and the US-China tussle, AUD/USD is less likely to remain strong for long. Though, no major data/events on the calendar can keep traders guessing unless any news hints print the positive signs.
Having bounced off 100-day SMA, currently around 0.7015/20, AUD/USD buyers can aim for June month’s top near 0.7065. Also acting as downside support could be the 0.7000 psychological magnet
Event Risk Data Today
UK: Nationwide house prices have been supported by the government’s stamp-duty holiday, up 2% in August from July. These gains have reversed the May-June losses, with prices up 3.7%yr.
US: The Dallas Fed Index is expected to continue to point towards solid growth driven by new orders and employment (prior: 8.0, market f/c: 8.5). The FOMC’s Mester will speak (04:00 AEST).