The AUD/USD is an on a bearish run, as both of the fundamental and technical outlook supporting the selling bias in the pair. The AUD/USD pair was closed at 0.68681 after a high of 0.69114 and a low of 0.67994. Overall the movement of AUD/USD pair remained bullish throughout the day. The pair AUD/USD after falling to its ten day's lowest level and posted gains during the previous trading in due to rebounded risk sentiment in the market.
On Friday, the risk perceived Aussie gained following the fears for the second wave of coronavirus emerged. The most populous states of America started reporting new infection cases after easing lockdown restrictions, which increased the concerns of the second wave of coronavirus.
The U.S. reported renewed 2M cases of COVID-19 as of June 12, along with the Federal Reserve's announcement that the road to U.S. economic recovery was long and uncertain. This increased the risk appetite after investors hoped for another lockdown restriction to avoid the second wave of coronavirus.
Speaking about the Aussie fundamentals, the Australian Prime Minister Scott Morrison said that International students would return to Australian universities in a very controlled setting. International students have been Australia's most lucrative industry after mining with China, which is the largest foreign student source.
The relation between Australia and China has been under disturbance since Australia called for an investigation into the pandemic origin. In response to what, China banned Australian beef imports and ended the Australian barley trade through massive tariffs. However, despite comments from Australia that it would not retaliate with the tit-for-tat scenario and would approach WTO instead, China did not stop and warned its citizens of pandemic-related racism if they traveled to Australia for studies.
However, Australian foreign minister, Marise Payne has accused China of disinformation through its pandemic-related racism warning on Friday. The disturbing relationship between China & Australia kept a lid on additional gains in the AUD/USD pair. Let's take a look at the technical side of the market.
Daily Technical Levels
Support Resistance
0.6794 0.6961
0.6733 0.7067
0.6628 0.7128
Pivot Point: 0.6900
Technically, the AUD/USD is trading bearish at 0.6806, and it has the potential to drop further unto the next support level of the level of 0.6770. Apart from fundamentals, the technical outlook of Aussie also looks bearish as the pair is holding below 50 periods of EMA while the RSI is holding below 50, suggesting the odds of bearish trend continuation. On the lower side, a bearish breakout of 0.6770 support level can extend selling until 0.6277 level while the resistance continues to hold around 0.6840. Well, the regression channel is also in support of selling. Thus, we should be looking to stay bearish below 0.6840 to target 0.6745 level today. Good luck!