AUD / USD is moving around 0.6990 in early trading this week on Monday. The Aussie pair initially offered a gap-down opening for this week from 0.6995 to 0.6988. Although, autumn cannot last longer than a low score of 0.6984.
It is worth mentioning that the quote printed the fourth consecutive weekly increase at the end of last week despite a coronavirus (COVID-19) worried at home.
The latest number of viruses from Victoria marks a record increase with 363 new cases. As a result, the government was forced to make mandatory masks at work, not forgetting to maintain social distance, citing 80% transmission.
On the other hand, figures from Texas show new cases rose by more than 7,300 with the death rate increasing by 93 on Sunday. Data shows that Australia and the US are struggling with a pandemic revival.
However, that was then more negatively affected and dragged the US dollar down, which in turn helped the AUD / USD pair. The US Michigan Consumer Sentiment Index on Friday gave an early signal that American confidence was waning. However, equities remained slightly positive amid hopes of further stimulus.
AUDUSD Movements Based on Catalysts
The same thing added to the Australian dollar's profit despite a viral problem at home. The initial signal of a large aid package during the announcement of fiscal stimulus this week also made market participants hope.
Conversely, concerns about the virus and US-China tensions, coupled with mixed data, limited the pair's upward momentum. As a result, the couple continues to struggle to find a temporary strong push.
Against this background, the 10-year US Treasury yields struggled around 0.62% at the end of Friday's close. This move failed to oppose Wall Street traders who managed to close this week with mixed footing.
Furthermore, the lack of data / key events will make traders look for new clues from qualitative risk catalysts such as viruses and Chinese-American tensions. Also likely to influence the movement of the pair is the decision of the European Union (EU) Summit where policymakers are divided on the much-awaited stimulus.
Prices had printed a monthly high to 0.7038 the previous day but could not last long, like recently. Even so, the latest U turnover of 0.6993, coupled with the recent positive price performance, makes bullish still a direction for AUDUSD movements.
Some AUDUSD Drivers
The atmosphere received extra support from upbeat US data and gloomy greenback performance. Nonetheless, the ongoing tensions between the US and China, with a rapid increase in the number of pandemics, tame positive sentiment.
While adding strength to Tuesday's statements from Moderna and US President Donald Trump, Oxford Scientists, and US health officials Fauci also suggested that a vaccine for the deadly virus would come out soon.
This has been the market driver of the previous day and increased the tone of off-late risk. Also added optimism could be optimistic data from the US and hopes for further stimulus by global policymakers.
US President Donald Trump signed an executive order to avoid Hong Kong's special trade status and threatened additional steps that received the response expected from China. However, it should be noted that vaccine hopes can continue to support risky moods and help the Aussie.
Also, high record pandemic figures from the US and fears that the virus conditions in Melbourne will further worsen the optimistic mood barrier. Against this background, Wall Street marks another positive day, albeit with lighter gains than Tuesday, while the 10-year US Treasury yields also rose further towards 0.70%.
Even if the data might immediately offer additional fuel for the pair's current rise, the anticipated weakness in the coming months at home and the possibility of rising US-Chinese tensions might limit the rise.
