AUD/USD: Bulls pulling commitments below weekly highs

AUD/USD bulls buckle below weekly highs as risk sentiment deteriorates.
Australia's ASX 200 Index was down 0.20% at 5,999.40 points in early trade.

Ross J Burland FXStreet

AUD/USD is currently trading at 0.6947 and virtually flat n the day having stuck to a relatively tight 0.6932/50 range for the Asian session so far.

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The Aussie has been on the radar this week with news of a resurgence in the coronavirus on home soil as well as the main event of the week in the Reserve Bank of Australia (RBA) interest rate decision happening yesterday.

Coronavirus update: Victoria reports 134 new infections, 860 active cases

AUD/USD snapped six consecutive days of advances as the less committed bulls took some profit off the table at weekly highs.

The RBA keeps the official cash rate (OCR) at the record low of 0.25% in July.

The pair made a post-meeting high of 0.6998 but rolled over to 0.6945 late afternoon as regional equity sentiment cooled.

This price extended to a low of 0.6923 in early London before moving to a high of 0.6977 as the US dollar faded away across the G10 space.

However, the price was soon met with sellers emerging on the latest coronavirus headlines which have upset Wall Streets impressive recovery year to date, shaving some cream off fro the top of US stocks and the benchmarks.

Wall Street Close: Investors start to doubt the economic recovery playbook

ASX 200 Index capped in mid-day trade

Meanwhile, Australian shares had slipped in early trade as investors cautiously hit the "pause button" after significant gains in the past few weeks.

Most of Wednesday's best-performing stocks were gold miners. Gold prices are on the verge of testing $1,800 on a spot basis.

Gold Price Analysis: XAU/USD bulls eye $1,800 threshold as virus-led risk-off fade equities’ rally

Consequently, Northern Star Resources (+4.7pc), Evolution Mining (+3.9pc) and Gold Road Resources (+3.6pc were top performers in the open today.

Meanwhile, financials was the weakest sector, weighed down by NAB (-1.5pc) and the other major banks, which shed between 0.8 and 1.5 per cent each.

AUD/USD levels

AUD/USD Forecast: Resurgent coronavirus contagions weigh on the Aussie

Overview
Today last price	0.6939
Today Daily Change	-0.0008
Today Daily Change %	-0.12
Today daily open	0.6947

Trends
Daily SMA20	0.6901
Daily SMA50	0.6729
Daily SMA100	0.6518
Daily SMA200	0.6673

Levels
Previous Daily High	0.6998
Previous Daily Low	0.6922
Previous Weekly High	0.6953
Previous Weekly Low	0.6832
Previous Monthly High	0.7065
Previous Monthly Low	0.6648
Daily Fibonacci 38.2%	0.6951
Daily Fibonacci 61.8%	0.6969
Daily Pivot Point S1	0.6913
Daily Pivot Point S2	0.6879
Daily Pivot Point S3	0.6836
Daily Pivot Point R1	0.6989
Daily Pivot Point R2	0.7032
Daily Pivot Point R3	0.7066

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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