Market Brief: AUDUSD Rebounds, Asian Stocks Lower On COVID-19 Fears
Asian stocks ended mixed on the first trading session of the week in a volatile session as investors trying to access the possibilities of another round of coronavirus infections. The new confirmed cases in the U.S hit the highest number since early May. A new lockdown will cancel the recovery in the global economy with negative implications on risky assets.
The recovery rally from the March lows, boosted by the monetary and fiscal measures from central banks and governments around the globe sending the valuations at demanding levels.
The central bank of China has set the one year rate at 3.85%, and the five-year rate at 4.65%, as was widely expected by markets.
In Asian markets today, Nikkei ended 0.18% lower at 22,437. The Hang Seng Index is 0.65% lower at 24,481. The Shanghai Composite index is 0.05% lower at 2,966, while the Singapore Straits Times index is 0.35% higher at 2,644.
Crude oil price after a weak start in Asian session turns positive. Brent crude oil is 0.97% higher at 42.28 per barrel, while the WTI crude oil is 0.95% higher at 39.85.
AUDUSD rebounds today after four consecutive sessions of losses. The pair last week was under selling pressure after the employment in May fell by 227,700 with the unemployment rate up to 7.1% the highest level since October 2001 while the Participation Rate dropped to 62.9%. The trade tensions between Australia and China also weighed on the Aussie dollar.
On the technical side, the pair keeps the positive momentum despite the previous week correction. On the upside, first resistance for AUDUSD stands at 0.6875 the daily high. Next resistance will be met at 0.6919 the high from June 19 trading session. The next supply zone is at 0.6982 the high from June 16.
On the other side, initial support for AUDUSD stands at 0.6811 the daily low. Below 0.6811 the next target will be at 0.6780 the low from June 15 trading session. Next support zone would emerge at 0.6664 the 200-day SMA.