Listen to the latest market mood for the AUDUSD pair.

The AUD should find sellers as Australia’s Victoria State declares a state of disaster with the state capital of Melbourne to be subject to tougher restrictions including a curfew from 8pm to 5am to at least September 13th. This should keep the risk-sensitive AUD sold during the session.

Risk sentiment should further weaken as White House Chief of Staff Meadows suggested there is still a long way to go in coronavirus relief negotiations and that he is not optimistic about reaching a long term deal.
With time running out to arrange a deal the AUDUSD should remain pressured during the European morning session.

We expect this trade to play out between now and the next 4-6 hours.

Trade Risks:

  • If we see progress made in reaching a US coronavirus relief package.
  • If we get positive treatment news for COVID-19 that will also invalidate this outlook.