AUD/USD: Off intraday high to revisit 0.6950 amid quiet markets
- AUD/USD takes the bids for the third day in a row.
- News from Korea, Japan extends the previous risk-on sentiment despite mixed virus figures.
- Trade war fears remain on the radars while pandemic updates could keep importance as economic calendar lacks key data/events.
AUD/USD drops to 0.6950 during early Wednesday. The pair recently refreshed intraday high of 0.6963 but eased from there amid a lack of major catalysts. Even so, the overall upbeat trade sentiment favors the aussie pair’s three-day winning streak.
The pair’s latest upside could be traced from North Korea’s suspension of military attacks on its southern neighbor. Earlier during the day, Japan’s further easing of lockdown restrictions and trade-positive signals from US Treasury Steve Mnuchin kept the quote on the plus side. It should also be noted that the markets remained positive the previous day amid hopes of further stimulus from the US as well as upbeat PMI data from key economies, including Australia, the UK and the US.
On the contrary, a mixed bag of numbers from Beijing, Korea and Australia continue to trouble the traders. Further, the tension surrounding the US-China trade war and the Trump administration’s anti-dumping investigations on Asian tire exporters also weigh on the risk-tone sentiment.
While portraying the market mood, US 10-year Treasury yields stay positive around 0.717% whereas the US stock futures and Asian equities print mild gains by the press time.
Looking forward, the latest trade war pessimism might hinder the pair’s further upside. Though, any more signals of global economies recoveries, as well as upbeat comments from the Fed policymakers, could keep the bulls in the driver’s seat amid a light calendar.
Technical analysis
Unless breaking 21-day EMA level around 0.6830/25, the quote can keep the upside momentum targeting 0.7000 as immediate resistance ahead of the monthly top near 0.7075.