- AUD / USD sellers catch their breath after two-day drops.
- As the NAB Business Conditions / Confidence fell, Moody’s lowered its outlook for the Australian banking system.
- The coronavirus continues to wreak havoc on the global financial markets, S&P Futures surprises with a slight increase despite the decline in Asian stocks, US Treasury yields.
- Unemployed claims in the United States will be significant, the virus update could keep the driver’s seat.
While defying the previous two-day losing streak, also ignoring the risk catalysts, the AUD / USD fell from its four-day low to 0.6085, up 0.10% at the start of Thursday. Bearish catalysts at home and abroad maintain the risk tone, but the pair seems to be cheering for the upturn in US equity futures.
Prime Minister Scott Morrisson recently crossed paths while saying that the spread of the virus is slowing down. Despite everything, the national leader raised concerns about community transmission while suggesting the return of Parliament next Wednesday.
The global rating giant Moody’s Investors Services downgraded its outlook for the Australian banking sector from stable to negative, citing “the large and growing scope of economic and market disruption caused by the coronavirus epidemic”.
Earlier, business confidence and National Australia Bank (NAB) ‘s first quarter (Q1) 2020 trading conditions in Australia revealed disappointing figures. Data on business confidence fell to the lowest since the Great Financial Crisis (GFC) while testing the score of -11 from the revision of -2 previously, while trading conditions also fell from previous 8 to -4.
It should also be noted that the Australian and New Zealand banking group (ANZ) recently released the first quarter job vacancies for Australia. The number decreased by 0.1% QoQ and 2.2% YoY compared to the previous ones + 1.2% and -1.5% respectively. “The reference date for the investigation was February 21, before COVID-19 was declared pandemic and when Australian cases were still relatively low. But there have been major revisions to industry and headline data since 2017, “added the report.
Elsewhere, the Fed has announced additional measures, of a temporary nature, to help major banks fight coronavirus in the United States. The same seems to help the US equity futures while US Treasury yields and Asian stocks carry the burden of viral pessimism.
Subsequently, a lack of important data on the economic calendar will push traders to look for viral updates for a new boost. However, jobless claims in the United States will be the key to following for a short-term orientation ahead of tomorrow’s US NFP.
Tuesday’s high around 0.6215 offers the main upside barrier for the pair, while 0.5985 could check declines below 0.6000 in the case of further declines.