29th June 2020- AUD/USD sellers attack 0.6850 as risk-off mood remains unabated


Good Morning,

Market Headlines

Risk sentiment retraced into the weekend as the rise in infection rates continued to accelerate in US. S&P dropped by 2.4%, lowest level in 2 weeks on the back of announcements in Texas and Florida that further restrictions are to be put in place. US 2yr treasury yields dropped 0.02% to 0.16%, meanwhile the 10yr yield dropped to 0.63%. Commodities, Brent futures finished up unchanged at $41.00, copper fell 0.2%, iron ore also unchanged at $103.35 while gold rose 0.4%

Currencies

The US dollar index finished up unchanged at the close.

EUR traded between 1.1195 and 1.1240.

USD/JPY traded between 106.80 and 107.35.

AUD ranged between 6841 and 0.6865.

NZD traded at 0.6402 before finishing at 0.6423.

AUD/NZD ranged between 1.0680 and 1.0695.

AUD Thoughts

  • AUD/USD sellers attack 0.6850 as risk-off mood remains unabated

  • AUD/USD stays below 0.6900 for third day in a row.

  • Rising cases in the US, India-China tussle keep the safe-havens in demand.

  • The surge in Gold helps the AUD to limit the downside.

  • A lack of major data/events keeps trade/virus updates on the driver’s seat.

Looking forward, markets will keep their eyes on the qualitative factors, concerning the pandemic, trade and geopolitics, for near-term direction. The economic calendar in Asia is mostly quiet ahead of Tuesday’s China official PMI. The 21-day exponential moving average (EMA) surrounding 0.6840 offers immediate support to the pair whereas an upside break of 0.6900 resistance mark could trigger fresh recoveries toward the monthly resistance line, at 0.6930 now

Event Risk Data Today

Japan: Retail Sales

Eurozone: Consumer Confidence Surveys are out with market expectations to rebound from 67.5 (prior) to 82.5 (f/c). Although, the unemployment rate will remain a further headwind to full recovery.

Germany: CPI numbers are out with markets expecting a slight bounce back into positive territory, f/c: 0.3%

US: Markets expectations is for a bounce back in Pending Home Sales for May. The Dallas Fed Manufacturing index is expected to produce another round of data.

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