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  • AUD/USD stays depressed near day’s low as US stimulus-backed risk-on fades.
  • Canada follows Europe, Turkey to ban flights from the UK, Ontario up for a lockdown.
  • PBOC keeps rate benchmark rates unchanged, US Congress passes one-day stopgap funding.
  • Risk headlines remain on the driver’s seat, US stimulus can renew optimism.

AUD/USD prints 0.65% intraday losses while eyeing the day’s low of 0.7564 during early Monday. In doing so, the quote fades recent bounce backed by the US coronavirus (COVID-19) stimulus headlines as the virus woes keep risks heavy in Asia-Pacific.

While following the footsteps of Europe and Turkey, Canada also stops flights from the UK. Headlines from Ontario also suggest Premier Doug Ford is set to announce the lockdown on Monday. 

The fears of the virus gained momentum during the weekend as Netherlands and Australia also marked one case each of the covid variant spotted by Britain.

Also weighing the risks could be worries of a no-deal Brexit, or additional lag in the divorce date, as policymakers from the European Union (EU) and the UK are yet to tackle hurdles relating to fisheries and level playing.

On the positive side, US Senate members avoided a government shutdown with a one-day stopgap funding while giving final touches to the COVID-19 stimulus bill. It should also be noted that the People’s Bank of China (PBOC) matched wide market expectations while defying any changes to the key one-year and five rates, respectively at 3.65% and 4.65% now.

Against this backdrop, stocks in Asia-Pacific and the S&P 500 Futures mark losses whereas the US dollar index extends recovery moves.

Although official updates over the US aid package may help renew the risk-on mood during the US session, additional fears of the virus can keep the AUD/USD prices heavy.

Technical analysis

10-day SMA near 0.7560 offers immediate support followed by an ascending trend line from November 02, at 0.7540 now. Alternatively, AUD/USD buyers will wait for a fresh high beyond 0.7640 while thinking to return.