AUD/USD keeps the red below 0.70 as S&P 500 futures drop 0.50%
- AUD/USD depressed amid negative S&P 500 futures.
- Australia’s virus warnings offset broad US dollar retreat.
- Coronavirus concerns and RBA minutes – next of note.
AUD/USD has pulled back from daily lows of 0.6974, as the bulls are rescued by the broad-based US dollar retreat.
Despite the fresh leg higher, the spot lacks follow-through to regain the 0.7000 level, as the persistent weakness in the S&P 500 futures (the risk barometer) weighs on the higher-yielding AUD. S&P 500 futures are down 0.50% to battle the 3,200 mark.
Further, the warning from the Australian acting chief medical officer that the country braces for the second wave of infection could likely keep the upside attempts elusive.
The greenback gave up the Asian bounce and returned to the red zone amid a solid advance in EUR/USD. The shared currency cheered the renewed optimism around the European Union’s (EU) recovery fund after reports that the grant was pushed higher to EUR390 billion and the Frugal Four were ready to accept the proposal.
Looking ahead, the spot will remain at the mercy of the risk sentiment and the USD dynamics, with no US macro news on the cards. The coronavirus updates and Reserve Bank of Australia’s (RBA) July meeting’s minutes will be closely eyed for fresh impetus.
AUD/USD technical levels
The immediate support is seen at 0.6978/74 (10-DMA/ daily low), below which the 20-DMA at 0.6944 could be tested. On the flip side, the recovery will likely face stiff hurdle at 0.7005 (daily high). The next resistance is aligned at 0.7039 (July 15 high).
AUD/USD additional levels