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AUD/USD Braces for Bullish Breakout - Quick Update on Aussie! 

EagleFX

The AUD/USD pair was closed at 0.69658 after placing a high of0.70130 and a low of 0.69308. Overall the movement of AUD/USD pair remained bullish throughout the day. The pair AUD/USD surged to its multi-month high and continued its bullish streak for 7th day on Friday amid the risk-on market sentiment.

On the data front, the AIG Services Index from Australia for May came in as 31.6 against the previous 27.1. From the American side, the jobs report suggested an increase of 2.509M jobs in May against the job loss figure by 7.750M. The unemployment rate was also dropped to 13.3% from 19.4% of expectations. On Sunday, the Trade Balance from China was released for May, which showed a surplus of 443Bbagainst the expected 283B. At 8:07GMT, the same Trade Balance in dollar value showed a surplus of 62.9B from 41.4B of expectations.

Upbeat China’s trade balance will support the movement of AUD/USD pair in the next week after the markets will open. The risk perceived Aussie gained a lot after the release of better jobs data from the US, which added in the risk appetite on hopes for faster global economic recovery.

On the other hand, China safeguarded its action towards coronavirus pandemic in a lengthy report published on Sunday. China reported that it had provided information in a timely and transparent manner.

According to that report, the Chinese government provided immediate reports of virus data and all relevant information about the pandemic to WHO and the international community on time. It also played an important role in preventing and controlling the epidemic around the world.

The government report included a detailed timeline of the Chinese government’s actions in which China began to update WHO on a regular basis from Jan. 3 and to the US CDC head from Jan. 4. The risk perceived china-proxy Aussie gained traction after China defended against US accusations and also after the risk sentiment became stronger in the market.


Daily Technical Levels

Support Resistance

0.6928 0.7012

0.6887 0.7055

0.6844 0.7097

Pivot Point; 0.6971

On Monday, the AUD/USD prices continue to trade in a sideways range of 0.6985 to 0.6880 level. Bullish crossover of 0.6985 level can lead the AUD/USD prices further higher towards 0.70% Fibonacci retracement level, which can be seen on the 4-hour timeframe. The RSI is holding at 80, which suggests that the market is overbought, and it needs a bit of retracement before showing the buying trend, but the recent bullish engulfing pattern suggests chances of bullish trend continuation in the AUD/USD pair today. Let's consider taking buying trade over 0.7000 level today to target 0.7050 and 0.7120. Good luck!

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