Listen to the latest market mood for the AUDUSD pair.
The sentiment is negative from overnight trading on COVID-19 concerns and news that US President Trump is planning tariffs against France and banning US Gov’t from buying goods and services from several Chinese tech firms including Huawei and ZTE.
The Dollar extended yesterday’s gains as COVID-19 second wave fears rise. This should result in the USD being supported today.
By contrast, the AUD should be weak today. As a high beta currency, it loses value in this market environment and Australia’s PM Morrison said news from Victoria state is very concerning and announced Australia will reduce the number of inbound arrivals as well as conducting a nationwide review of hotel quarantine.
Therefore, expect AUDUSD sellers from pullbacks.
Day trade outlook – We expect this trade to play out before the end of the US session.
- Any fast fall in Australia COVID-19 cases would also invalidate this outlook.
- Any reversal of risk tone would weaken the USD and invalidate this outlook.