- AUD / USD retraces below 0.7300 after failing at the 0.7335 / 40 resistance area.
- The Australian dollar capitulates against the strength of the US dollar.
- AUD / USD remains focused on 0.7345 – UOB.
The australian dollar it has failed, once again, at the 0.7335 / 40 resistance area after a strong performance during Monday’s European session. The pair fell from session highs at 0.7335 to find support at 0.7265 as the US dollar regained lost ground.
The aussie retreats against a stronger USD
The AUD appreciated in early trading, driven by moderately positive market sentiment. News reporting that AstraZeneca’s COVID-19 vaccine is 90% efficient has alleviated concerns about the economic impact of the pandemic, which favored “risk assets” such as the AUD versus the safe haven dollar.
The positive traction seen in European trading hour has been undermined by news that the Trump administration is weighing new punitive measures against China, which is one of Australia’s largest trading partners.
Beyond that, the strong USD rally triggered by the upbeat US preliminary Markit Purchasing Managers Index survey has pushed the pair below 0.7300 to be negative on the daily charts. The PMI has shown stronger-than-expected performance in both the manufacturing and services sectors, boosting confidence about the strength of the US economy.
AUD / USD remains focused on 0.7345 – UOB
From a technical standpoint, the UOB currency analysis team sees the Aussie biased to the upside, with a key resistance at 0.7345: “As highlighted, the odds of further AUD strength would diminish unless it breaks resistance soon. main at 0.7345. Looking ahead, a breakout of this fairly strong level could potentially lead to a rapid rise towards 0.7380. On the downside, a breakout of 0.7245 (unchanged from the ‘strong support’ level) would indicate that the AUD is not ready to go up yet. “
Technical levels
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