- AUD/USD refreshes intraday high of 0.7136 following RBA’s no rate-change decision.
- Market’s risk-tone sentiment extends latest recovery as upbeat US data, hopes of further stimulus supersedes virus woes.
- US Factory Orders, updates from the American Congress, concerning the pandemic will be in focus.
AUD/USD eases from 0.7136 to 0.7130 as the RBA held monetary policy unchanged on early Tuesday. Even so, the pair keeps the early-day gains while snapping the two-day losing streak.
RBA left its benchmark interest rate unchanged at 0.25% during the latest policy meeting. In doing so, the Aussie central bank’s policymakers sound cautious while citing uncertainty over the global outlook.
Read: RBA: Accommodative approach will be maintained as long as it is required
Trading sentiment stays positive following the upbeat prints of US ISM Manufacturing PMI and American policymakers’ rush to deliver the already delayed fiscal stimulus. However, spreading of the pandemic in Australia’s Victoria becomes the key concern. On Tuesday’s Victorian State Premier Daniel Andrews said, anyone who has contracted COVID-19 and caught outside their home in breach of isolation orders will face fines of nearly A$5,000 ($3,559.00). Also standing on the negative side could be a warning from the World Health Organization (WHO) President Dr. Tedros Adhanom Ghebreyesus.
Talking about data, Australia’s June month Retail Sales and Trade Balance decorated the economic calendar during the early-Asia. While Retail Sales grew past-2.4% initial forecast to 2.7%, trade surplus softened to 8,202M versus 8,800 market consensus.
Having witnessed the initial reaction to the RBA moves, traders will wait for Friday’s Statement of Monetary Policy (SOMC) for further details. However, the US Factory Order for June, expected 5% versus 8% prior, will precede Wednesday’s ISM Non-Manufacturing PMI to entertain the pair traders.
It should, however, be noted that any agreement among the US Senators, concerning the fiscal outlay or the unemployment claims benefits, will be an additional boost for the quote. Furthermore, developments surrounding the virus vaccine may offer extra support to the optimists.
Technical analysis
Unless the quote slips below 0.7065/60 support-zone, comprising June 10 high and July 24 low, bulls are less likely to stop dreaming for 0.7200. Though there will be multiple resistances beyond the July month’s top near 0.7230, also the highest since early-2019, to challenge the bulls afterward.
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