The AUD/USD prices were closed at 0.65989 after posting a high of 0.66159 and a low of 0.65249. Overall the movement of AUD/USD prices remained bullish throughout the day. The AUD/USD pair extended its previous gains and ended its day with a bullish candle for 3rd consecutive day on Wednesday. The pair reached its highest level of 0.66159 since 9th March.
The pair posted gains due to the broad-based U.S. dollar weakness after the potential vaccine for virus was failed to provide satisfactory results in animal trials. Furthermore, the data published by Oxford-based US Moderns Inc. about the vaccine trials was reported to be insufficient to be declared as a potential vaccine for treating coronavirus. The data released by the company did not prove that it could be used to stop the spread of the virus.
The U.S. dollar's safe-haven status made it difficult for the currency to gain traction and hence caused the pair AUD/USD to move in an upward direction. The increased tension between Australia and China has raised fears of a new trade war in the market. Australia announced that it was not in a trade war with China as it would not fire back on China in response to the latest tariffs on Australian Barley by China. Australia said that it would respect the trade rules and present its case against the World Trade Organization (WTO) if China does not reverse its decision to impose 80% tariffs on Australian goods.
At 6:30 GMT, the Retail Sales from Australia for the month of March came in as -17.9% against February's 8.5% and weighed on AUD.
U.S. Dollar was also weak due to the easing of lockdown measures from economies across the globe, which raised the risks for the second wave of coronavirus and weighed on the U.S. dollar.
Daily Technical Levels
Pivot Point: 0.6579
The AUD/USD traded exactly in line with our previous forecast to hit a high level of 0.6615 level. On the 4 hour chart, the Aussie dollar pair has violated the triple top pattern, and closing of the candle above this level is suggesting odds of a bullish trend in the pair. For the moment, the AUD/USD prices are showing bearish correction until 0.6561. Continuation of bullish trend above 0.6550 level can lead the pair prices towards 0.6615 and 0.6710 while bearish breakout will open additional selling room until 0.6510. Good luck!