AUD/USD finding support in risk-averse market

• The AUD/USD pared off all the gains yesterday.
• RBA’s Governor left some worrisome comments, giving more room to the bears.
• COVID concerns are heavily weighing on the market.
• The technical picture seems mixed. Nevertheless, a mild upside can be expected.

The AUD/USD pair continued its sharp decline and completely absorbed the previous rise in the pair.  Now the price is trading near the support / local low level of 0.7460, but the market lacks any momentum at the moment.

AUD/USD on RBA Governor’s speech

The AUD/USD maintains the offered tone for three straight trading sessions, posting 0.36% intraday loss near the 0.7460 area. The RBA Governor Lowe weighs more on the Aussie, pushing the price to refresh the weekly lows. The pair can test the yearly lows as COVID concerns are increasing. RBA’s Lowe said, “Watching Sydney lockdown carefully, but expect the economy to rebound quickly once over.” Bears are further pleased as Lowe cited slow growth in wages.

COVID fears hitting  

The market sentiment remains downbeat amid COVID fears. It adds more fuel to the bearish momentum in the AUD/USD. The infection rate rises to all-time highs in New South Wales and South Korea.

According to Australia’s Health Expert, Catherin Bennett, Australian residents should be vaccinated before evening, thinking of removing lockdown as the virus is again spreading. It is also worthy to note that the daily death toll amid pandemic reduced to 8000. However, the total death toll has crossed four million.

AUD/USD technical view: Lookout for sweet spots

The AUD/USD pair remains under bearish dominance below the 200-DMA. However, the 200-DMA is in a horizontal move, indicating that the price may get attracted to the 200-DMA. Furthermore, the average daily range for the pair has already done by 59% for the day. It means there is less room for further active movement.

However, the 4-hour chart shows mild support around the swing low of 0.7445. The volume is declining with the recent wave of price fall. It shows the profit-taking of buyers rather than new sellers in the market. Therefore, the technical picture seems mixed and may require additional catalysts to provide fresh impetus to the market.

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