Free Trial

Bear Flag Formation Reinforces Downtrend


Limited Pre-CPI Trade


(M2) Outlook Remains Bearish


(M2) Trend Needle Still Points South


(M2) Resistance Remains Intact

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Spot AUD/USD finished flat on Thursday, the pair hit lows of 0.7723 and highs of 0.7758 but ultimately failed to capitalize on moves in either direction. The pair last down 4 pips at 0.7743.

  • The state of Victoria imposed a seven day lockdown yesterday to address a jump in the number of cases. The lockdown in the second most populous state has fueled speculation that a fiscal response could be required with some estimating it could shave up to 0.2ppts off GDP. CBA are more positive: "AUD has been largely unscathed from the most recent Covid‑19 outbreak in Victoria. Nevertheless, the resumption of a 7‑day lockdown in Victoria serves as a reminder that downside economic risks will persist until the virus is controlled."
  • From a technical perspective AUD/USD continues to trade in a range. A bearish theme dominates though following the recent move lower to 0.7688 on May 13. A firm support zone has been defined at 0.7688-75, the latter is the May 4 low. Clearance of this support would strengthen a bearish case and signal scope for a deeper pullback towards 0.7586, the Apr 13 low. For bulls, a breach of 0.7813, May 18 high would be positive and open 0.7891, high May 10.
  • There are no domestic releases on the docket on Friday.

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.