Search ForexCrunch
  • AUD/USD is edging lower following Friday’s sharp drop.
  • US Dollar Index climbs to fresh six-day highs above 93.50.
  • JOLTS Job Openings is the only data featured in the US economic docket on Monday.

The AUD/USD pair lost more than 70 pips on Friday to close the week virtually unchanged and struggled to stage a meaning recovery on Monday. As of writing, the pair was down 0.2% on the day at 0.7143.

DXY extends rebound

In the absence of significant macroeconomic data releases from Australia, the USD’s market valuation remains as the sole driver of AUD/USD’s action. The US Dollar Index (DXY), which gained nearly 0.7% following the upbeat Nonfarm Payrolls on Friday, was last seen at its highest level since August 4th at 93.68, rising 0.28% on a daily basis. In the second half of the day, the US Bureau of Labor Statistics will release the JOLTS Job Openings data. 

Meanwhile, heightened concerns over another COVID-19 outbreak in Australia continue to weigh on the AUD. Over the weekend, Australia reported 17 coronavirus-related fatalities in the state of Victoria to mark the largest daily increase in the death count. “The number of new cases climbed by 394, taking the state’s total to 14,659,” Victoria’s Premier Daniel Andrews said in a press conference on Sunday, as reported by Bloomberg.

On Tuesday, the National Australia Bank (NAB) will publish the Business Confidence and the Business Outlook data for July. Investors will keep a close aya on coronavirus updates as well.

Technical levels to watch for