The AUD/USD currency pair remains on the back foot, with a faded recovery off the intraday low.
Victoria, Queensland, and NSW plan to extend the covid-led lockdown for another week, with certain restrictions being eased.
Australia In June, the AiG Performance of Services Index and ANZ Job Advertisements both decreased.
Minutes from the FOMC, as well as clear headlines, are essential for a new jolt of energy.
During Wednesday’s Asian session, the AUD/USD fell back below 0.7500, falling 0.10 percent intraday around 0.7490. The pair fell the most in a week the previous day amid a broad risk-off mood, while domestic fears over the coronavirus (COVID-19) and pessimism have kept downside pressure on the quotation so far today.
As US markets returned from a long weekend on Tuesday, fears of an economic slowdown, fueled by recently lower US data and the covid resurge, reduced risk appetite. However, the ISM Services PMI fell to 60.10, below estimates of 63.5 and prior readings of 64.0, as concerns about the covid strains grew due to discussion about the strains’ vaccination resistance. It’s worth mentioning that the Reserve Bank of Australia’s (RBA) hawkish stance failed to jog the bulls’ memory.
As the nation struggles with inoculations, Queensland, New South Wales (NSW), and Victoria are all likely to extend the virus-related activity restrictions for another week. Nonetheless, restrictions on certain activities in limited regions have recently been relaxed.
Aside from the US data and virus concerns, Aussie economics could be to blame for the AUD/USD pair’s recent weakness. The AiG Performance of Services Index fell below 61.2 in June from 57.8 in May, while ANZ Job Advertisements increased by 3.0% from a downwardly revised previous reading of 6.8% in the same month.
S&P 500 Futures are down 0.10 percent intraday, while US 10-year Treasury rates are hovering around 1.36 percent, following the steepest decline since late February.
Any additional deterioration of viral circumstances at home or abroad will be damaging to the AUD/USD pricing as long as covid fears remain high and recovery dreams are shattered. The FOMC Minutes Statement for the most recent meeting is also worth watching, since bears appear to be more interested in hearing about the policymakers’ wide difference.
Failure to maintain a month-old trend line breakout sends AUD/USD bears to the yearly low of 0.7444 before highlighting the top of 0.7416 in August 2020. Meanwhile, short-term rising momentum is limited by the indicated resistance line around 0.7520, followed by the 200-DMA level of 0.7575./n
