AUD/USD remains in strong contention for the pair of the month maintaining levels not seen in over a year at $0.7182. This comes on the back of RBA’s Assistant Governor Christopher Kent readiness to buy bonds if markets continue to deteriorate in order to a 25% yield target.
The USD continues to weaken due to policy makers locking horns and not being able to reach a decision on the fiscal plan. But if that wasn’t enough COVID-19 plagues them like a dark cloud seemingly infecting everyone that takes a breath in this super power. It makes Australia’s Melbourne infection rate seems like a slow-growing rash rather than an out of control pandemic.
But we can’t go a day without talking about the tension between US and China. Mother America and China seem to be in a nasty divorce battle which is not coming to a close anytime soon. But this does no favors for the Greenback.
For the Bulls – Consider a target of 0.7200. If you see a break past that we seek a target of 0.7219.
For the Bear – Consider targeting 0,7065 with a break below this look for 0.7060