5th August 2020 - AUD/USD defies the pullback from 0.7167 while picking up the bids from 0.7155.

Good Morning,

Market Headlines

US benchmarks were choppy on Tuesday but that did not prevent that Nasdaq Composite extending its all-time highs, with the US buoyed by stronger data and company earnings. However, there was still no resolution to the deadlock between congressional Democrats and Republicans on a fresh fiscal relief package for the US.


AUD/USD: 0.7116 – 0.7167

EUR/USD: 1.1722 – 1.1806

GBP/USD: 1.2982 – 1.3108

USD/JPY: 105.65 – 106.19

USD/CAD: 1.3324 – 1.3422

NZD/USD: 0.6590 – 0.6625

AUD/JPY: 75.47 – 75.77

AUD/NZD: 1.0789 – 1.0829

AUD Thoughts

- AUD/USD defies the pullback from 0.7167 while picking up the bids from 0.7155.

- RBA stood fat with policymakers citing global outlook as “highly uncertain”.

- Aussie Retail Sales gained on MoM but lagged quarterly, Trade Balance softened.

- US dollar failed to cheer upbeat Factory Orders as policy deadlock over stimulus continues.

Markets now turn their attentions to Australia’s AiG Performance of Construction Index and Commonwealth Bank Services PMI ahead of watching over Aussie housing market data and China’s Caixin Services PMI. However, major attention will be given to the US stimulus package, COVID-19 updates and ISM Non-Manufacturing PMI for near-term direction. Although the US dollar has started trading lower, any surprise positive will be enough to pull the greenback well above the two-year lows and weigh on the AUD/USD.

Overall the pair is still in an uptrend. It is only wise to worry about the divergence if the red support level breaks to the downside. It would be hard to bet against the strength of this uptrend at the moment and if the psychological 0.72 area break it could be game on for the bulls.

Event Risk Data Today

CN – July Caixin PMI

Eurozone – July services PMI

US – July ADP employment

Recent Posts

See All


This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision.  The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.Navigate Global Payments Pty Ltd nor its related parties or officers accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.