- AUD / USD benefits from a pause in the bounce of the US dollar.
- Treasury yields hold firmer after Biden’s $ 2 trillion stimulus plan.
- The additional rise depends on the US data and the speeches by Powell and Biden.
He AUD/USD moves higher at the start of the European session of the jeuves, now extending the bounce above the 0.7750 level amid a pause in the US dollar rebound as markets await further directional momentum.
During the Asian session, the announcement of the expected stimulus from President-elect Joe Biden of around 2 trillion dollars saved the day for Treasury yields as they rallied sharply and drove the US dollar higher.
The new strength of the USD dropped the AUD / USD pair to near 0.7730 before the bulls struggled to regain control amid the rally in S&P 500 futures and Asian stocks. In addition, better-than-expected Chinese trade balance data also helped the Australian dollar rebound.
Looking ahead to the European session, US dollar bulls take a breather, as the dust settles after the announcement of Biden’s likely biggest stimulus plan, while the focus shifts to weekly US unemployment data and Fed Chairman Jerome Powell’s speech.
Amid recent rumors about the Fed’s reduction of bond purchases, Powell’s comments could attract significant attention. However, Biden’s speech at 00:15 GMT on Friday will be the key to a new direction for prices.
AUD / USD technical levels