- The Australian dollar is among the best performers of the day.
- AUD / USD is heading towards the highest close since mid-September after a sharp reversal.
The pair AUD/USD it continued to rise during the American session and reached 0.7264, the highest level since September 21. It remains at the top of the range, with a strong bullish tone intact, despite the overbought reading on short-term technical indicators.
The key factor is risk appetite on Thursday so far. On Wall Street, the Dow Jones rose 2.25% and the Nasdaq 2.24%. Gold is up 2.52%. Market participants continue to focus on the US elections. Biden is still the most likely winner, but there are still more votes to count. The Trump camp will make an “important” announcement shortly from Las Vegas. Recently, President Trump tweeted “stop counting.”
Another key event today is the FOMC decision. No changes are expected in the monetary policy stance. The Fed’s tone could impact the markets. The official US employment report is due to be released on Friday. In Australia, the central bank will release the Monetary Policy Statement after cutting rates earlier in the week.
Technical perspective
AUD / USD is clearly trading above its October highs, reinforcing the positive momentum. As long as it is above 0.7200, the bias will point to the upside. Resistance levels can be seen at 0.7270 and 0.7295 / 0.7300.
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Credits: Forex Street
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