The AUD/USD closed at 0.68869 after placing a high of 0.68923 and a low of 0.68471. The pair seesawed between gains and little losses on Thursday throughout the day and had a slightly muted reaction to the U.S. economic figures. Investors were concerned that a sharp rise in the number of new coronavirus cases from across the globe could trigger fresh lockdown measures. This cautious behavior of traders dampened the prospects of sharp V-shaped recovery of the global economy and weighed on investor’s sentiment and benefitted the safe-haven U.S. dollar.
The USD bulls maintained the strong bullish trend around after the release of Core Durable Goods Orders, which increased by 4.0% in May from the expected 2.1%. The Durable Goods Orders also increased by 15.8% against the expected 10.3% and supported the U.S. dollar. The AUD/USD pair remained under pressure till then; however, it took its place after the release of Unemployment Claims on Thursday.
The Unemployment Claims from the U.S. last week surged to 1.480M from the expected 1.320M and weighed on the U.S. dollar. Meanwhile, the GDP report confirmed that the U.S. economy was contracted by 5% in the first quarter of 2020. The decreased demand of the U.S. dollar after the release of jobless claims gave a push to AUD/USD pair on Thursday.
Meanwhile, the U.S. Secretary of State Mike Pompeo called on the United States and European Union to join hands and cultivate a shared understanding of China to create an effective resistance strategy against Beijing’s increasing economic power. Furthermore, Pompeo said that U.S. was reviewing its global deployment of forces to ensure that it was postured appropriately to counter the People’s Liberation Army (PLA), given the increasing threat posed by China to Asian countries like India, Malaysia, Indonesia, and the Philippines.
Daily Technical Levels
Pivot point: 0.6875
The AUD/USD pair is trading with a bullish bias of over 0.6888 level, and above this, the next target is expected to target the next resistance area of 0.6975. Continuation of upward movement can lead the AUD/USD prices further higher until 0.7000 level. Recently, the pair has closed a bullish engulfing candle, which is suggesting strong odds of bullish trend continuation in Aussie. Let us take buy trades over 0.6875 level today. Good luck!