The Aussie dollar makes some recovery attempts on Thursday after yesterday’s rejection from the 0.71 figure. The local corrective rebound is due to some pickup in risk sentiment capping the USD demand. However, despite the selling pressure has eased, the wider picture shows that AUDUSD still vulnerable to further declines.
The AUD rallies still look unsustainable and attractive for sales as the US-China trade tensions are far from being resolved and there are no signs of progress on this front. Besides, the greenback remains supported by the “hawkish” Federal Reserve, solid US economic data and the prevailing risk-off environment globally amid a number of risks.
So the pair will likely get back below the 0.7050 support and register fresh 32-month lows in the near term, but we could see a more robust rebound before the bears reenter the game. The driver for AUDUSD local rise could come from the US 3Q GDP report due tomorrow if the numbers disappoint.
The AUD rallies still look unsustainable and attractive for sales as the US-China trade tensions are far from being resolved and there are no signs of progress on this front. Besides, the greenback remains supported by the “hawkish” Federal Reserve, solid US economic data and the prevailing risk-off environment globally amid a number of risks.
So the pair will likely get back below the 0.7050 support and register fresh 32-month lows in the near term, but we could see a more robust rebound before the bears reenter the game. The driver for AUDUSD local rise could come from the US 3Q GDP report due tomorrow if the numbers disappoint.