Still watching and waiting here as this is a currency pair the expectation that the global economy can begin to eventually look beyond Covid-19 (and effectively already can now for much of Asia) and that fiscal stimulus will drive inflation and commodity prices higher. The AUDUSD has traded in a very narrow range for over two weeks now as bulls wait for the signal that a 0.7400+ break is unfolding that can shift the focus perhaps all the way to 0.8000+ if the USD is set for a major weakening move. On the flip-side – declining US long yields are a confusing factor here and if this represents a concern on the growth outlook, the reflation trade may yet falter. Still, a breakdown in AUDUSD only looks a threat if the price action retreats below 0.7200.
Our information/charts are NOT buy/sell recommendations. Are strictly provided for educational purposes only. As always ,trade at your own risk and analysis.
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