- Australian dollar fails at 74.70 for the second day in a row and pulls back to 74.20.
- The aussie loses momentum as risk appetite falters amid growing coronavirus cases in the US.
- AUD/JPY consolidates above recent ranges after a 1.4% rally earlier this week.
The AUD/JPY has been capped at 74.70 for the second consecutive day on Thursday and the pair retreated during the US trading session although it remains steady above 74.20. On a bigger picture, the aussie is consolidating gains after a 1.4% rally earlier this week.
The aussie loses ground as risk appetite falters
The risk-sensitive Australian dollar has been buoyed by positive macroeconomic indicators this week, yet with the looming concerns on a second COVID-19 wave, weighing on sentiment.
The AUD/JPY opened the day on a strong footing, practically unaffected by downbeat expected Australian trade balance data. Australian trade balance declined to 8,025 M in June from the 8,800M surplus reported in May, against market expectations of an increase to 9,000M
The pair rushed up during the European session to retest Wednesday’s high at 74.70 before pulling back again as the market shifted its focus on the increase of coronavirus infections in the US.
AUD/JPY limited below 74.70 resistance
On the upside, immediate resistance lies at 74.70 (Jul. 1 high) and above here, 75.05 (Jun. 16 high) and 75.60 (Jun. 10 high). On the downside, immediate support lies at 74.20 (intra-day low) and below here, 73.90 (Jul 1 low) and 73.18 (Jun. 30 low).