- AUD / USD is under pressure from a strengthening dollar.
- Fall in the stock markets in the world drive the demand for safe haven assets.
AUD / USD continued to lose ground in the pre-US session and fell to 0.7701, marking a new two-day low. It then bounced and is trading at 0.7710, still with a marked bearish tone.
AUD / USD weakness follows after days in a row with gains. A change in the mood of global markets led to a drop in stocks, including Wall Street supporting the demand for the dollar.
Fears of the impact of the coronavirus in the face of new restrictions, plus the fading of optimism over Biden’s economic plan, are weighing on the markets. Falling Treasury yields are limiting dollar gains. Traders will closely monitor what happens on Wall Street. Also in the US, the preliminary PMI report will be published.
Should it break below 0.7700, the AUD / USD weakness could extend. The next support is seen at 0.7685. To the upside, a rally above 0.7750 would change the intraday bias from bearish to neutral / bullish.
Technical levels
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