- AUD/USD-retreats is about 100 pips for the past five months tops as a set earlier this Wednesday.
- The risk on mood, undermined the refuge USD, and helped limit, the greater the losses.
- Investors now look forward to the US macro versions for a bit of a boost.
The AUD/USD pair has extended retracement of the slide from the period of five months tops, and slipped below the 0.6900 mark, or the costs of the day, low during the beginning of the European session.
The pair has stalled its recent upward path, and having regard to the evidence of a modest pullback to the proximity of the key 0.7000 psychological of the brand. The intraday slide of about 100 pips lacked any obvious fundamental catalyst, and could be attributed only to some profit-taking.
Extremely conditions of overbought on the short term, the graphics seemed to be the only factor which has prompted traders to take some profits on the table. However, a combination of factors have contributed to limit the effectiveness of any fall, and instead might attract some dip-buying.
Growing optimism about a strong rebound in a ” V ” to the global economy has continued to support the market optimism of the mood. This, in turn, has kept the safe-haven value of the US dollar is under pressure and extended some support for the perception of riskier Australian dollar.
Therefore, it remains to be seen if the downtick marks-the-end-of-the-AUD/USD: the pair’s recent strong recovery, the displacement of the 0.5500 area to 17 years of low, or is still seen as an opportunity to engage in some fresh bullish positions.
Market participants look forward to the US macro data for some momentum for later in the course of the early North American session. Wednesday’s us economic docket highlights the publication of the ADP report on private-sector employment and the ISM Non-Manufacturing PMI.