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  • AUD/USD extends the late-US session recovery from 0.6865 to attack recent range resistance.
  • American virus figures keep disappointing, Europe and the UK also print increase in the numbers.
  • Texas Governor halts plans for economic reopening, Germany fights back to the US tariff threats.
  • A light calendar, holiday in China could restrict the market moves, key risk catalysts remain on the driver’s seat.

AUD/USD seesaws around 0.6890/85 following the high of 0.6892 flashed at the start of Friday’s Asian session. In doing so, the aussie pair stretches the recovery moves from 0.6865 but stays in the 0.6846-93 range established since the late-US session. It’s worth mentioning that the quote managed to offer a positive daily closing on Thursday despite the broad pessimism due to the coronavirus (COVID-19) woes as well as fears of trade wars between the key global economies.

Bulls keep firming up the grip amid fewer data/events…

With the scarce economics on the calendar, not to forget holidays in China, AUD/USD buyers chose not to concentrate on the broad pessimism backed by the pandemic fears and trade war worries. The moves could have taken clues from the domestic fundamentals suggesting a lack of bounce in the cases, in contrast to the dire situations in some of the US states and recently in Europe and the UK.

In light of the surge in the coronavirus wave 2.0, Texas Governor Greg Abbott ordered to halt all the planned economic restart. Elsewhere, the World Health Organization (WHO) warned cited fears for Europe while the UK also marked a slight increase in the numbers with the latest push to the economic restart.

On the other hand, the Trump administration’s tariff threat on the EU/UK goods got retaliation from the German Chancellor by attacking the Nordstord 2 project. Additionally, Brussels also criticized US efforts. Further, the White House officials push for China to purchase more lobsters as a part of the phase one deal.

It should also be noted that the US Federal Reserve’s recent stress test allowed them to ban 34 largest banks from share repurchases in the third quarter (Q3) while also capping the dividend payments. The move from the US central bank can be considered as a distant push to the market’s optimism.

At home, the RBA’s Deputy Governor, Guy Debelle recently spoke at the interview with Bloomberg. The policymaker cited the lack of liquidity in the G10 currencies while being optimistic about the Asian markets.

Looking forward, a lack of major data/events will keep traders directed towards the qualitative factors while searching for direction.

Technical analysis

A short-term symmetrical triangle between 0.6830 and 0.6950 restricts the pair’s immediate moves above the key 200-day SMA support of 0.6665. Meanwhile, an upside break of the triangle can avail an intermediate halt near 0.6975 before aiming 0.7000 threshold and the monthly top near 0.7065.