AUD/USD: 0.7000 is a tough nut to crack amid negative S&P 500 futures

• Aussie’s upside capped by fresh weakness in S&P 500 futures.

• US dollar declines stalls in early European trading.
• Focus shifts to COVID stats, US jobless claims for fresh cues.

Sellers continue to lurk just below the 0.7000 level, as AUD/USD now consolidates the renewed upside around 0.6985 region, up 0.10% on the day.

The aussie witnessed good two-way price movement so far this Thursday but remained within the familiar trading range below 0.7000.

The spot briefly fell to 0.6970 levels following the initial rejection at the higher levels, as the bears cheered the report that Tasmania extended state of emergence until August.

The major held the lower ground on sluggish Chinese inflation data and Australian Prime Minister (PM) Scott Morrison’s announcement of measures for the Hong Kong residents.

Markets, however, shrugged off the escalating Australia-China row over the HK issue, as the S&P 500 futures popped and exacerbated the pain in the US dollar, which helped lift AUD/USD back to the 0.70 handle.  

Over the last hour, the pair is ranging in the upper band of the 0.6900 level, as the S&P 500 futures have turned negative while the bulls await a fresh impetus from upcoming US jobless claims and COVID stats.

Its also worth noting that a fresh leg higher in gold could offer fresh zest to the resource-linked AUD while markets also follow the recent rally in the Chinese yuan.

AUD/USD technical levels

“Bullish MACD increases the odds for the pair’s sustained rise past-0.7000. Though, the resistance line of the said channel, at 0.7025 now, might question the bulls afterward. Alternatively, the pair’s pullback might take rest on the channel’s support line of 0.6940,” explains FXStreet’s Analyst Anil Panchal notes.

AUD/USD additional levels