Australia posted its biggest one-day spike in coronavirus cases in two months, heightening concerns that the nation could go into its second lockdown, and possibly driving AUD/USD lower.
- Australia is experiencing a second wave of infections as the number of coronavirus cases hit its highest in two months, sparking fears of a second lockdown.
- Furthermore, Australia which relies heavily on exporting iron ore, is seeing its prices at unsustainable levels, which could drift lower.
- The International Monetary Fund overnight projected a deeper recession and slower recovery for the virus-ravaged world economy than it anticipated two months ago.
- Given AUD/USD is moving towards 0.7000 which could act as a strong resistance, any room for upside is very limited for now. We believe that prices could retrace lower toward the 0.6760 price level first.
Fullerton Markets Research Team
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