- AUD / USD bounces off dollar weakness on all fronts.
- Go up in the stock markets in the world supports currencies linked to commodities.
He AUD / USD is holding on to modest daily gains, and remains close to the day’s highs, above 0.7700 and looking at the 0.7720 zone, while the dollar remains in negative territory on all fronts and under pressure.
After two days of declines, AUD / USD gained momentum and is rising, recovering from a two-week lows. It also returned above the 20-day moving average that is passing through 0.7682.
The optimism in the markets over the advance of the vaccination against COVID-19, by the data from China and the announcements of stimuli in the US, are helping the mood of the markets.
With no US economic data on Tuesday, the focus is on Janet Yellen’s presentation to a Senate committee for confirmation as Secretary of the Treasury. Joe Biden will assume the presidency on Wednesday.
The rise in the yields of Treasury bonds has been one of the factors that have limited the fall of the dollar in the market. The Dollar Index (DXY) is trading at the day’s lows below 90.40. Should the weakness spread, it could continue to propel AUD / USD, which faces next resistance at the 0.7730 area. Climbing overhead, the Aussie would be positioned to extend the raise.
Technical levels
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