AUD/USD slips below 0.7200 as Aussie PM speaks dovish

AUD/USD carries pullback from 0.7186 to print three-day winning streak.
US policymakers show signals of overcoming stimulus deadlock but no agreement arrived yet.
Aussie Health Minister defies calls of a study suggesting over 1,100 new virus cases.
Australia’s PM Morrison anticipated a 10% unemployment rate and

Anil Panchal FXStreet

AUD/USD drops to 0.7197, intraday high of 0.7214, during early Thursday. Even so, the quote prints gain for the third day in a row after Wednesday’s run-up to refresh an 18-month top with 0.7241. Global markets cheer US dollar weakness, coupled with hopes of further stimulus, to propel the risk barometers. However, the recently downbeat comments from Australia’s PM Scott Morrison weigh on the quote.

The American Congress members have recently turned upbeat as they near the August vacation, starting from this weekend. While the House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnel portray the diplomats’ rush towards a decision, US President Donald Trump stays ready to use executive orders if Democrats keep stopping the deal.

On the other hand, Australian Health Minister Greg Hunt turns down the early-day chatters citing a study that signals more than 1,100 cases and a longer peak of the coronavirus (COVID-19). Recently, Australian PM Scott Morrison crossed wires while speaking on cybersecurity. The national leader highlighted the need for strong mental health as new lockdowns would be taking a toll on Victorians. Mr. Morisson further said that the unemployment rate s expected to peak at about 10% while also citing Treasury estimates saying, Victoria's stage 4 lockdown would reduce the size of the economy in the September quarter by between $7 billion to $9 billion.”

While the official figures of the new cases are yet to be published, ABC anticipates around 471 cases versus 741 prior.

Elsewhere, the US secretary of state Mike Pompeo keeps criticizing China and warns American citizens to exercise increased caution concerning travel in or to China.

Against this backdrop, S&P 500 Futures rise over 0.30% while Australia’s ASX 200 gains 0.60%.

Traders will keep eyes on the risk catalysts like US stimulus headlines and COVID-19 news for fresh impetus amid a lack of major data/events ahead of the American session.

Technical analysis

Unless breaking 0.7110-0.7095 region comprising 10-day EMA and a rising trend line from May 22 bulls can keep targeting the early 2019 top near 0.7300.

Additional important levels

Overview
Today last price	0.7203
Today Daily Change	11 pips
Today Daily Change %	0.15%
Today daily open	0.7192

Trends
Daily SMA20	0.708
Daily SMA50	0.6968
Daily SMA100	0.6646
Daily SMA200	0.6702

Levels
Previous Daily High	0.7241
Previous Daily Low	0.7152
Previous Weekly High	0.7228
Previous Weekly Low	0.7087
Previous Monthly High	0.7228
Previous Monthly Low	0.6876
Daily Fibonacci 38.2%	0.7207
Daily Fibonacci 61.8%	0.7186
Daily Pivot Point S1	0.7149
Daily Pivot Point S2	0.7106
Daily Pivot Point S3	0.706
Daily Pivot Point R1	0.7238
Daily Pivot Point R2	0.7284
Daily Pivot Point R3	0.7326

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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