Title:AUD/USD bounces off multi-month lows, still in the red just above 0.7300 mark
Jul 21, 2021 9:57:07 AM GM
The AUD/USD pair maintained its provided tone via the primary 1/2 of the European session, albeit has controlled to rebound round 25-30 pips from multi-month lows touched in advance this Wednesday. The pair became remaining visible buying and selling across the 0.7315-10 region, nevertheless down 0.25% for the day.
The prolonged lockdowns in Australia’s maximum populous states of Sydney and Victoria persevered appearing as a headwind for the aussie, which became similarly compelled with the aid of using disappointing macro data. This, at the side of a broad-primarily based totally US greenback strength, exerted a few follow-via stress at the AUD/USD pair for the 5th consecutive day.
However, a mixture of things assisted the AUD/USD pair to trim part of its intraday losses to the bottom degree considering the fact that November 2020. The USD witnessed a few profit-taking from over three-and-1/2 of-month tops amid a follow-via rally in the fairness markets, which, in turn, prolonged a few assist to the perceived riskier aussie.
That said, developing marketplace fears approximately the ability financial fallout from the unfold of the fantastically contagious Delta variation of the coronavirus ought to preserve to underpin the safe-haven USD. Apart from this, a robust pickup in the US Treasury bond yields ought to act as a tailwind for the dollar and cap the upside for the AUD/USD pair.