- The AUD / USD pair met several new offers close to 0.7600 amid growing demand for the US dollar.
- The US dollar maintained its bid tone after the release of the US ISM Services PMI in June.
- The focus of the market will remain on the minutes of the FOMC’s negotiations on the principles scheduled for Wednesday.
The AUD / USD pair gave up AUD / USD It leveled a significant portion of its intraday gains to more than weekly highs and has now fallen to the lower end of the intraday range, back below half of 0.7500.
The pair tried to benefit from their strong positive intraday move and again failed near the 0.7600 level. The US dollar found some support due to heavy sales of the common currency in response to the unsatisfactory publication of the results of the ZEW survey. This, in turn, was considered the main factor that led to new sales around the AUD / USD pair.
Nevertheless, concerns about the spread of highly contagious delta mutants of coronavirus continued to affect ghosts investors. This was evident from the cautious mood in the markets in stock. This was considered another factor that acted as the tailwind of the safe dollar and diverted flows from the riskier Australian dollar.
The dollar stabilized and did not appear to be affected by the US PMI ISM Services PMI, which fell to 60.1 in June from a consensus of 63.5. In addition, the employment sub-component did not meet market expectations, although it was largely balanced slightly better than the expected component of the “prices paid” report.
Meanwhile, the declining outlook for earlier-than-expected Federal Reserve policy could prevent US dollar bulls from making strong bets and help curb the decline in the AUD / USD pair. Friday’s mixed U.S. job report seems to have convinced investors that the US Federal Reserve will wait longer to reduce purchases or increase assets prices Advantage. This, along with the recent decline in US Treasury revenues, could undermine the dollar.
It would therefore be wise to wait for strong sales to follow before confirming that the recent recovery from annual lows has lost steam and relocated for further return. The market continues to focus on publishing the minutes of the FOMC meeting on Wednesday. Investors will be looking for new clues Expectation The monetary policy of the US Federal Reserve, which will play a major role in influencing the price dynamics of the US dollar and provide a new directional impetus for the AUD / USD pair.