- AUD/USD tries to bounce amid better market sentiment.
- Risk appetite weighs on US dollar demand and helps Australian dollar rebound.
- The RBA’s upbeat outlook is also still in play ahead of Powell’s speech.
The AUD/USD has stopped its initial pullback near the 0.7420 region and is now heading back up towards the 0.7450 level during the European session on Thursday.
The renewed rise in the Australian dollar is largely due to new sales seen in US dollarwhile the USD stops its movement against the main currencies amid upbeat market sentiment. The dollar fails to sustain the rebound despite the recovery in US Treasury yields across the curve.
Investors turn cautious ahead of speeches from the world’s top central bankers. Fed Chairman Jerome Powell is expected to confirm the recent surge in aggressive talk of various members of the FOMC.
In the meantime, the aggressive shift in forward guidance by the Reserve Bank of Australia (RBA), central bank meeting minutes revealed, also holds sentiment around AUD.
In addition to Powell’s appearance, “market participants now await the US economic calendar, with the release of the Philadelphia Fed manufacturing index and weekly initial jobless claims later in the day,” notes the FXStreet analyst Haresh Mengani.
AUD/USD technical levels
Source: Fx Street
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