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AUD falls to Open the Week

The Aussie market is softer across the board to start the new trading week, dragged down by some small lockdown measures that have been taking place.

In recent days in Australia, a small amount of COVID cases were found in Sydney and business have closed in a few major suburbs. The news is likely to hit the retail sector hard in what is the busiest trading week of the year for many. And of course, Sydney is Australia’s biggest city.

Fortunately, the cases are well and truly under control, so it is just a matter of riding out a few days.

As it happens, the only real data point to be released in Australia this week is retail sales, which analysts were expecting to show continuous improvement. Of course, this figure won’t be impacted by the latest COVID developments.

Looking to the AUD/USD and price has opened the week lower, along with the stock market, however, it is worth noting that the NZD/USD is also red to start the week. The Greenback has opened the week higher, as we have also heard word the US lawmakers have reached an agreement on a US stimulus package – although it is yet to be passed.

On the charts, price pushed through the 0.7600 level last week and has been nothing short of bullish thanks to the tumbling USD.

Price opened under that level and is pushing higher, so the obvious area of interest will be 0.7600 to see if it gets rejected or if the bulls will push it higher. We might get a clearer picture of risk sentiment today when US traders start the day as we see how markets respond to the stimulus.

AUD/USD – 240min.
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Rowan Crosby
Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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