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AUD/USD Trades Near YtD Highs

AUSSIE

AUD/USD slid into Thursday's WMR fix after Victoria declared a record number of new Covid-19 cases, while USD showed some broader strength. A poor showing from oil and gold added some pressure to AUD. The rate recoiled in U.S. hours, as the greenback got hammered by the worst U.S. GDP readings in several decades and President Trump's tweet calling for a delay in elections (later downplayed by top Congresspeople from both sides of the aisle). The greenback's retreat was enough to allow AUD/USD to finish above neutral levels for the fifth consecutive day.

  • Australian Treasurer Frydenberg announced that the gov't will extend the permission for companies to hold virtual AGMs to Mar 21.
  • AUD/USD trades flat at $0.7194 as we type, with bulls looking to take out Apr 18/17, 2019 highs at $0.7199/0.7206 before targeting 1.764 projection of the Mar 19 - 31 rally from Apr 3 low at $0.7222. Bears look for a dip through Jul 24 low of $0.7064, a key near-term support.
  • Australia reports PPI & private sector credit today. Next week, focus moves to AiG & CBA (f) M'fing PMIs and ANZ job ads (Monday), trade balance, retail sales and RBA MonPol decision (Tuesday) , as well as RBA SoMP and comments from RBA Asst Gov Ellis (Friday)

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