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Feb 14 - 12:12 PM

AUD/USD - COMMENT-Transitory Or Durable, AUD/USD Bulls Enjoying Reprieve

By Paul Spirgel  —  Feb 14 - 11:05 AM

Aussie bulls are enjoying this week's reprieve that lifted AUD/USD Monday's near-11-year low of 0.6657, with the help of recent less-dovish comments by RBA Governor Lowe nS9N28T01S, but it's still unclear whether this relief is just transitory.Diminished fears about economic effects of the coronavirus have supported AUD/USD's recovery, which is consolidating near 10-DMA support by 0.6716. Fears of pan-Asia and global growth disruptions have indeed driven AUD/USD weakness, as evidenced by its drop from mid-January highs by 0.6934 to current levels.
The recent yaw surrounding the number of coronavirus infections and fatalities hints at further volatility as markets assess the implications of the outbreak.
Talk of a steady RBA in the face of uncertain growth prospects removes a significant obstacle for AUD/USD gains, but lingering global growth uncertainties, in addition to the coronavirus, may still weigh on AUD/USD.
Bulls need a close above 0.6746, the 23.6% Fibo of 0.7032-0.6657 to gain momentum.
With Bollis and DMAs pointing lower, bears remain in control under the 0.6829-56 range, which includes multiple daily moving averages and the 50% Fibo of 0.7032-0.6657 at 0.6845.


AUD Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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