The AUD/USD pair has been showing resilience in recent trading sessions, despite a two-day losing streak that saw its lowest level since mid-March. The pair has maintained its bid tone through the early part of the European session, indicating a bullish sentiment.
Lack of Bullish Conviction
While the AUD/USD pair maintains its bid tone, it lacks bullish conviction. This means that the buying pressure is not strong enough to push the pair to new highs. The lack of bullish conviction can be attributed to a number of factors, including the uncertainty surrounding the global economy and the ongoing pandemic.
Factors Affecting AUD/USD Pair
The AUD/USD pair is affected by a number of factors, including economic data releases, central bank policy, geopolitical tensions, and market sentiment. Economic data releases, such as GDP, inflation, and employment data, can have a significant impact on the pair. Central bank policy, particularly that of the Reserve Bank of Australia (RBA) and the Federal Reserve, can also influence the pair. Geopolitical tensions, such as trade disputes and political instability, can also have an impact. Finally, market sentiment, or the overall mood of investors, can influence the pair.
Trading Strategies for AUD/USD Pair
Traders looking to trade the AUD/USD pair should consider a number of strategies. These include technical analysis, fundamental analysis, and sentiment analysis. Technical analysis involves analyzing charts and using indicators to identify trends and patterns. Fundamental analysis involves analyzing economic data releases and central bank policy to determine the direction of the pair. Sentiment analysis involves analyzing the overall mood of investors and their expectations for the pair.
Conclusion
The focused keyword for this article is AUD/USD pair. In conclusion, the AUD/USD pair is showing resilience below the 0.6600 mark and attracting some buying, indicating a bullish tone in the early part of the European session. However, the lack of bullish conviction suggests that traders should exercise caution when trading this pair. Traders should consider a number of strategies, including technical, fundamental, and sentiment analysis, when trading the AUD/USD pair.
