6th August 2020 - AUD/USD: Consolidates run-up to 18-month top near 0.7200


Good Morning,

Market Headlines

- The Dow climbed 373.71 points, or 1.39%, to 27,202.18.

- S&P 500 added 21.52 points, or 0.65%, to 3,328.03.

- Nasdaq put on 58.22 points, or 0.53%, to 10,999.39.

- Gold storms above $2,050, hits new all-time highs

- Trump is ready to use executive action to overcome policy deadlock

Currencies

AUD/USD: 0.7184 – 0.7241

EUR/USD: 1.1807 – 1.1905

GBP/USD: 1.3059 – 1.3160

USD/JPY: 105.33 – 105.87

USD/CAD: 1.3235 – 1.3295

NZD/USD: 0.6640 – 0.6673

AUD/JPY: 75.88 – 76.42

AUD/NZD: 1.0816 – 1.0860

AUD Thoughts

- AUD/USD seesaws between 0.7186 and 0.7200 following its highest levels since February 2019.

- Downbeat ADP, employment component of ISM Non-Manufacturing PMI weighed on the US dollar, gold surged to fresh record high of $2,055.69.

- Market sentiment cheers hope of further stimulus, virus woes, vaccine news play their part as well.

- A light calendar keeps risk catalysts on the driver’s seat.

Looking forward, markets will observe hints to the COVID-19 stimulus package while keeping eyes on other risk catalysts such as the Sino-American tussle, virus headlines and growth updates for fresh impetus.

An area comprising 10-day Exponential Moving Average (EMA) and a rising trend line from May 22, near 0.7110-0.7095 becomes near-term key support zone. On the upside, early 2019 top surrounding 0.7300 lures the bulls.

Event Risk Data Today

UK – BOE Decision

US – Weekly Jobless Claims

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