11.06 - AUD/USD: A sustained break below the 0.6900 mark
- by George Solotarov
The AUD/USD pair edged lower through the Asian session on Thursday and extended the previous session's late pullback from YTD tops.
The Fed's gloomy economic projections took its toll on the global risk sentiment. now expects GDP to contract -6.5% in 2020 and the unemployment rate to be at 9.3% by year-end. This, in turn, provided a goodish lift to the USD's safe-haven status and exerted some heavy downward pressure on the perceived riskier Australian dollar. The pair has now reiterated to the lower end of its weekly trading range, albeit has still managed to hold comfortably above the 0.6900 marks.
From a technical perspective, a sustained break below the 0.6900 marks (weekly lows) will be seen as a fresh trigger for bearish traders and prompt some technical selling. The pair might then accelerate the slide further towards testing the next major support near the 0.6845 horizontal zones.