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AUD/USD chart - Trading View
AUD/USD was trading largely rangebound on the day at 0.7228 at around 05:25 GMT.
The pair is consolidating previous session's weakness and finds strong support at daily cloud.
The Australian dollar remains under pressure amid rising COVID-19 cases and Australia-China trade row.
Australia Deputy Foreign Affairs and Trade Secretary Christopher Langman said in a Caixin Summit event in Beijing that disruptive trade with China will be restored.
Despite the Australian federal official's citing that they are ready to engage with China on current issues, the AUD remains largely muted.
A spike in the number of COVID-19 infections across the globe stokes fears of fresh lockdowns, raising fears regarding the economic recovery.
Risk assets remain depressed as a consequence. Markets could be pricing out the coronavirus vaccine's positive results led optimism.
Technicals for the pair show the pair is pivotal at 200H MA support at 0.7229. Decisive break below will support further weakness.
Next major support below cloud lies at 20-DMA at 0.7152 ahead of 23.6% Fib at 0.6963. Failure to break below cloud negates any bearish bias.
