AUDUSD opens the week with a downside gap to 0.6932, currently around 0.6939, from Friday’s close near 0.6942. It only took about an hour for the bulls to push upward and fill the gap.
Coronavirus, US-China tensions limit the upside
Recent coronavirus (COVID-19) updates in America have seen hospitalizations in Texas post record highs for seven straight days, with a rise by 291 to 8,181 on Sunday. Even worse, the pandemic numbers coming out of the US have exceeded 50,000 cases per day every day in July and are at record numbers. US President Donald Trump last week claimed the surge in the figures is a result of massive testing, an assertion that medical professionals contest.
Compounding issues, the US and China remain at odds over trade and other issues, and the tension has been increasing. China’s passage of the Hong Kong security law has increased the strain. A White House official recently said more punitive measures would be coming soon.
The Reserve Bank of Australia’s (RBA) monetary policy meeting on Tuesday will be the key for this week. The reason being the Australian dollar’s strength and the surge in the virus numbers at home, Melbourne cases the biggest in three months.