AUD/USD – Comment – AUD/USD Lacks Upward Momentum Despite Equity Gains

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The Australian dollar has made strong gains in recent months, in correlation with the S&P index. What is the outlook for AUD/USD?

The latter’s inability to break above 0.6900 when Wall Street shrugged off rising coronavirus infections to close more than 1.0% higher on Thursday is frustrating stale AUD/USD longs.

If the recovery in risk assets proves to be a one-day detour before global economic growth concerns related to the surge in COVID-19 infections re-emerge, the AUD/USD will be vulnerable.

Key support is at the June 15 low at 0.6777 and a break below would suggest a top is in place at 0.6975-80, and a move towards the 200-day moving average at 0.6667 is underway.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.