- AUD / USD celebrates the upbeat phone call between Joe Biden and Xi Jinping.
- Positive comments on the Australian economy are also supportive.
- The USD suffers from a weak US CPI as the focus shifts to jobless claims.
The AUD/USD is in a mode steady recovery to two-week highs of 0.7756 set the day before, having found solid support around the 0.7715 region at the start of the Asian session on Thursday.
AUD / USD had a pullback the day before and you have captured new purchases at the beginning of the session Asian after Australian Treasury Secretary Kennedy made positive comments about the economic recovery during his testimony before a Senate committee.
“Australia’s economy is recovering faster than expected“Kennedy said, adding that it is a recovery driven by consumption.
In addition, a long-awaited phone call between US President Joe Biden and Chinese President Xi Jinping, has added credibility to the renewed rise in the pair.
The conversation between Biden and Xi has been mainly positive for the markets, with indicative goodwill and mutual respect, which has raised risk sentiment and limited the recovery of the safe-haven US dollar among major currencies.
Sentiment around the dollar has also been affected by gloomy US CPI data and pessimistic comments from Fed Chairman Jerome Powell.. Powell reiterated Wednesday that the central bank’s new policy framework could accommodate annual inflation above 2%, while noting that the focus remains on employment.
Meanwhile, a lower volume day due to the holidays combined with US stimulus hopes also offer support to the higher yielding Australian dollar. The focus of attention now shifts to weekly US jobless claims and sentiment on Wall Street for new directional impulses.
AUD / USD technical levels
FXStreet analyst Haresh Menghani explains, “The lack of strong buying tracking warrants some caution for bull traders. This makes it prudent to wait for a sustained move above the previous day’s highs, around the 0.7755 region, before positioning for any further bullish movement. On the other hand, the break point of the mentioned trend line resistance, currently around the 0.7715 region, could act as immediate support. This is closely followed by the round 0.7700 “level.
Additional AUD / USD levels
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