AUD/USD refreshes daily low below 0.6900 mark, downside remains limited

The AUD/USD pair extended its retracement slide from five-month tops and slipped below the 0.6900 mark, or fresh daily lows during the early European  |  03/06/2020 10:59
  • AUD/USD retreats over 100 pips from five-month tops set earlier this Wednesday.
  • The risk-on mood undermined the safe-haven USD and helped limit deeper losses.
  • Investors now look forward to the US macro releases for some meaningful impetus.

The AUD/USD pair extended its retracement slide from five-month tops and slipped below the 0.6900 mark, or fresh daily lows during the early European session.

The pair stalled its recent bullish trajectory and witnessed a modest pullback from the vicinity of the key 0.7000 psychological mark. The intraday slide of over 100 pips lacked any obvious fundamental catalyst and could be solely attributed to some profit-taking.

Extremely overbought conditions on short-term charts seemed to be the only factor that prompted traders to take some profits off the table. However, a combination of supporting factors helped limit any meaningful fall, rather might attract some dip-buying.

Growing optimism over a sharp V-shaped recover for the global economy remained supportive of the upbeat market mood. This, in turn, kept the safe-haven US dollar under pressure and extended some support to the perceived riskier Australian dollar.

Hence, it remains to be seen if the downtick marks the end of the AUD/USD pair's recent strong recovery move from the 0.5500 neighbourhood – 17-year lows – or is still seen as an opportunity to initiate some fresh bullish positions.

Market participants now look forward to the US macro data for some impetus later during the early North American session. Wednesday's US economic docket highlights the release of the ADP report on private-sector employment and ISM Non-Manufacturing PMI.

Technical levels to watch

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com