Home Forex News AUD/USD NZD/USD Rally But Susceptible To Resurgent Greenback

AUD/USD NZD/USD Rally But Susceptible To Resurgent Greenback

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  • Australia Re-opening
  • Coronavirus Infection Concerns
  • Risk Aversion demand

AUD/USD and NZD/USD edged higher, Monday morning, after coming under pressure last week on U.S dollar resurgence. The pairs have struggled to hold on to gains at three-month highs amidst growing concerns about economic recovery and the ever-growing risk of COVID-19 pandemic.

AUD/USD Rally

AUD/USD pair was up by more than 0.3% as Australia Prime Minister, Scott Morrison, sounded upbeat about the re-opening of the economy amidst a spike in coronavirus infections in recent weeks.

Time                            : 06-29-2020

Pivot                           : 0.6868

Technical View           : Long Above 0.6888

Target                         : 0.6914 and 0.6937

Comments                  : Weak Bullish

Last Price                    : $0.6898

Australia is grappling with what appears to be re-emergence of coronavirus infections. The latest wave is threatening to take a toll on the second most populous State of Victoria. Amidst the new cases, the prime minister insists the State’s should go forth and ease lockdown restrictions.

The Prime minister is pushing forth with openings as the lockdown are costing the economy jobs. Similarly, the Prime Minister insists that the $60 billion subsidy program is not sustainable beyond the end of September.

While the opening talk has offered support to the pair, the Australia dollar remains susceptible to greenback strength amidst development on the global scene. The dollar is seen strengthening amidst the second wave of infections in the U.S.

Souring relations with China is another development that should continue to weigh on AUD strength against the greenback. Similarly, tensions between China and India appear to be fuelling risk aversion in the market, sending the dollar higher conversely AUD/USD lowers.

NZD/USD Bounce Back

New Zeeland Dollar also continues to register gains against the dollar despite the Reserve Bank of New Zeeland calling for a weaker NZD to boost Exports. New Zeeland is grappling with one of the biggest economic contractions in recent years that should continue to weigh on the NZ dollar against the USD.

The Central Bank has already warned that the Gross Domestic Product is at risk of contracting the most in at least 160 years.

Time                            : 06-29-2020

Pivot                           : 0.6421

Technical View           : Long Above 0.6441

Target                         : 0.6461 and 0.6471

Comments                  : Weak Bullish

Last Price                    : 0.6435

Looking ahead, the focus is on the release of the U.S Pending Home Sales and Fed Daly Speech, which should influence trader’s sentiments on the greenback conversely influences AUD/USD and NZD/USD price action.

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