- AUD / USD recovery from 0.7250 stalls below 0.7320
- The Australian dollar appreciates as market sentiment improves.
- AUD / USD: Unlikely to rise above 0.7350 – Westpac
The australian dollar it rose on Friday, rebounding from 0.7250 to regain most of the ground lost on Thursday, before hitting resistance at 0.7320. The pair, however, remains firm above 0.7300, heading for a 0.7% weekly gain.
Aussie appreciates in brighter market sentiment
The general appetite for risk observed on Friday, with the market shifting its focus back towards progress on the various COVID-19 vaccines, has propelled the Aussie against a vastly weaker USD.
The announcement by pharmaceutical company Pfizer and BioNTech that they will apply to US regulators for an emergency use authorization has raised hopes that the vaccine will be available in late December or early January. This has alleviated previous fears about rising coronavirus cases triggering a rebound in risk in European trading hours, which has lost momentum during US business hours.
The US dollar index lost ground during the Asian session, to return to the week’s lows at the 92.20 area, although it has managed to rebound, with risk appetite waning during the US session, turning positive on the day.
AUD / USD Likely Below 0.7350 – Westpac
From a technical standpoint, Westpac’s currency analytics team does not expect the Aussie to break past 0.7350: “Combination of positive vaccine news, record Chinese steel production fuels record demand for iron ore and commodities in general, in addition to Lowe’s comments that ‘negative rates were still extraordinarily unlikely in Australia’ have raised confidence in Australian dollars in recent sessions (…) We still see new closings / curfews and Home orders in the US and Europe. We see the aussie limited at 0.7350 for now. ”
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
