AUD/USD At Key Support, Trump Popularity On The Rise Despite Virus Spike

AUD/USD OUTLOOK, PRESIDENTIAL DEBATE, TRUMP-BIDEN SPREAD, 2020 ELECTION – KEY POINTS

  • AUD/USD tests the key support at 0.7018, the break might hasten the selloff?
  • Democrats draft $2.4 trillion stimulus package with the urgency for additional stimulus swells
  • The popularity of Trump swiftly returning despite the rise of COVID-19 cases in the USA

40 DAYS TO THE US ELECTION

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40 days until the 2020 presidential elections with president Trump’s popularity slowly increase despite the increasing COVID-19 cases. Although his disapproval rating briefly rose at the rating briefly rose at a three year high at 56.4%, this has retreated with the popularity rating slowly edges higher from the previous 1 year low of 40.2% to 42.8%.

AUD/USD

As of now, the number of COVID-19 infections in the United States currently stands at 6.97 million, with about 202,000 deaths. The most recent rise seems to be one of the biggest factors that are shaking the domestic futures markets with the specter of extended or reimposed lockdown restrictions haunting hopes of any recovery.

Lawmakers in Washington are currently locking horns with regards to how they will build another highly needed stimulus bill with the economic impact of COVID-19 fizzling out. Nancy Pelosi, the House Speaker stated that the Democratic are preparing for talks on the $2.4 trillion stimulus package that might pass next week. The intransigence cost is quite high and the sustained delays might further drag down shares and the risk linked currencies.

AUD/USD PRICE OUTLOOK

Since it topped at 2019 December swing high trading at 0.7393, the pair has recently retreated to 5% and briefly tested the support trading at 0.7018. What is happening here might be essential? Breaking under this barrier with the follow-through might signal the traders that the underlying confidence in the AUD/USD uptrend potential is lacking. So, the bearish sentiment might start swelling and further drive the pair lower as Silver and Gold Weak on Stalled Stimulus Negotiations, USD Resurgence.

Also, the bounce from 0.7018 might broadcast the sign of confidence to a level that traders interpret the recovery as signs that the pair is not ready to rise. In this case, the AUD/USD might rise, but the gains could be sealed at a similar, but highly formidable resistance territory between 0.7181 to 0.7206.

AUD/USD Chart

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