- AUD/USD holds onto recovery gains amid broad US dollar weakness.
- The coronavirus pandemic takes the toll on the greenback, RBA continues on its pledged liquidity infusion.
- China’s Industrail Profits slump.
- Trade sentiment remains sluggish in wait for the House voting on the US COVID-19 Bill.
While extending its five-day winning streak, AUD/USD takes the bids to 0.6100 during the early-Friday trading session. The pair benefits from the broad US dollar weakness amid mostly positive risk-tone despite coronavirus (COVID-19) fears. Today’s US House voting on the coronavirus relief package will be the key to watch.
The Aussie traders paid a little heed to the record drop in China’s Industrial Profits, down 38.3% YoY, for January-February. The reason could be traced from the US dollar weakness. The US dollar index drops to the fresh low in seven days to 99.22 by the press time.
The US is now ahead of China as far as the virus numbers of infected people, above 81,000, are concerned. Even so, US President Donald Trump cheers the Gilead Remdesivir and others.
The Republican leader, in his Coronavirus Task Force Briefing, told that he will be talking to China’s President Xi Jinping about the virus during his call at 02:30 GMT.
The US Senate passed a $2 trillion aid package the previous day and there is likely debate over the same around 10:00 GMT before pushing it to the lower House for final voting.
It should also be noted that the US Michigan Consumer Sentiment figures for March, expected 90.00 versus 95.9 prior, may offer additional volatility to the pair.
Though, the major attention will be given to the political plays as well as coronavirus data for near-term direction.
Technical analysis
Unless marking a daily closing below the 10-day SMA level of 0.5935, the pair is likely rising further towards 21-day SMA, at 0.6235 now.
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