AUD/USD: Bulls trying hard to regain 0.6900 amid cautious optimism
- AUD/USD fights for 0.6900 once again amid dollar pullback.
- China’s vaccine hopes and Australian PM Morrison’s optimism underpin.
- Sentiment on global stocks and virus data to play a key role.
Having found fresh bids once again just shy of 0.6850, AUD/USD extends the bounce towards 0.6900 into early European dealings, as the bulls attempt another run to take-out the latter.
The uptick in the aussie is mainly because the US dollar remains on the back foot starting out a new week, as markets trade with cautious optimism. Growing fears over the coronavirus second wave globally outweigh the optimism over the economic re-openings.
Meanwhile, some of the US states backpedaled on their re-openings on Friday, as virus fatalities exceed half a million people worldwide.
However, the sentiment got a brief lift earlier on the day after news that China is advancing on clinical trials with a vaccine candidate called Ad5-nCoV, flipped S&P 500 futures back on to gains and drove AUD/USD beyond 0.6850.
The aussie dollar also benefited from the upbeat remarks from the Australian Prime Minister (PM) Scott Morrison and a rebound in the Chinese Industrial Profits. PM Morrison said the reopening up of the state borders in the country will support jobs growth, disregarding the alarming rise in the coronavirus outbreak in the no. 2 populous state of Victoria.
Attention now turns towards the US Pending Home Sales and Fed-speak for fresh trading incentives. Meanwhile, the sentiment on the global stocks and virus updates will remain the main driver in the day ahead.
AUD/USD technical levels
On the upside, 0.6900 is a tough nut to crack for the AUD/USD buyers, as it is the confluence of the 20-DMA and round number. On a break above the latter, buyers will aim for June 22 high at 0.6923. To the downside, the daily pivot point of 0.6858 will offer the initial support, below which June 22 low of 0.6804 could be tested.
AUD/USD additional levels