Jul 15, 2021 9:47:17 AM GMT
By: AnalysisWatch
The AUD/USD pair maintained its supplied tone via the primary 1/2 of the European consultation and became final visible soaring close to the 0.7465 region, only a few pips above every day lows.
The pair did not capitalize at the preceding day's fantastic move, rather met with a few sparkling deliver on Thursday and became forced with the aid of using an aggregate of factors. The Australian nation of Victoria became ordered right into a five-day lockdown on Thursday following a spike in COVID-19 infections, which, in turn, acted as a headwind for the AUD/USD pair.
The poor factors, to a bigger extent, have been offset with the aid of using a softer tone surrounding America dollar, which became visible because the simplest element lending a few aid to the AUD/USD pair. The dollar became weighed down with the aid of using an extension of the preceding day's sharp decline in the US Treasury bond yields and the Fed Chair Jerome Powell's dovish testimony.
Looking on the broader picture, the AUD/USD pair has been oscillating in a slender band during the last one week or so. The range-sure rate movement constitutes the formation of a rectangle, which is probably categorized as a bearish consolidation segment earlier than the subsequent leg down. The technical set-up helps potentialities for in addition close to-time period downfall.
Market members now look ahead to America monetary docket, proposing the releases of the same old Initial Weekly Jobless Claims and Philly Fed Manufacturing Index. This, in conjunction with America bond yields and Powell's 2nd day of congressional testimony, will affect the USD rate dynamics and bring a few short-time period buying and selling possibilities across the AUD/USD pair.
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