- The AUD / USD captures some new purchases on Friday and breaks the range of the previous day.
- Optimism over the COVID-19 vaccine weighs on the safe-haven USD and supports the pair’s upward move.
- Rising above the 0.7365-70 region could have already laid the foundation for further gains.
The pair AUD/USD has moved higher during the Asian session on Friday and has soared to the highest level since early September, around the region of 0.7380-85. At time of writing, the pair is slightly retracing from that level, but remains positive for the day around the 0.7375 region, still above the range of the previous day.
The pair has captured some new purchases on the last day of the week and has finally broken its consolidation range from the previous day amid a softer tone around the US dollar. Optimism about the progress of coronavirus vaccines has continued to weigh on the safe-haven U.S. dollar.
Meanwhile, concerns about economic consequences The continued rise in COVID-19 cases have returned after unimpressive macroeconomic data from the United States on Wednesday. The unexpected jump in initial US jobless claims raised expectations for further fiscal stimulus from the incoming Biden administration. and put some additional pressure on the dollar.
The USD has been further pressured by a further downward movement in US Treasury yields. This, along with with the optimistic sentiment prevailing in the market, has further benefited the perceived riskier Australian dollar and pushed the AUD / USD pair above the 0.7365-70 resistance zone. This, in turn, could have laid the foundation for additional short-term earnings.
Therefore, some continuation strength beyond the 0.7400 level, towards a retest of the September high around the 0.7415 region, now seems a possibility. In the absence of relevant macroeconomic data from the US, broader risk sentiment will influence USD price dynamics and could generate some short-term trading opportunities around the AUD / USD pair.
AUD / USD technical levels
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