- AUD/USD pullback from 0.7100 support area.
- US equity futures are bullish and the US dollar remains firm.
- Dovish RBA and pandemic keep the pair under check.
AUD/USD trades near 0.7140 – intraday highs, during the early European session today.
The pair managed to bounce from the region around 0.7100 as the US dollar traded weak today. The rise in the S&P 500 futures indicated a flow towards riskier assets and such currencies like AUD benefitted at the expense of the safe-haven USD.
Nevertheless, the worries of probable lockdown-measures to contain the spread of COVID-19 linger in the background; this will support the greenback. AUD/USD traders will also consider the stalemate in the US stimulus discussions before taking an aggressive posture in the pair.
The chances of further rate cuts from the Australian central bank in the upcoming meeting in November also worry the bulls and more selling might come in if the AUD/USD moves further up from the current levels. On the other hand, bears need to wait for a confirmed move below 0.7100 before initiating fresh shorts.
The economic docket ahead has Durable Goods Orders from the US. Market participants will eye the broad market sentiments to decide the action on for the day.
At the time of writing, one Australian dollar buys 0.7129 US dollar, up 0.08% as of 8:45 AM UTC.