- A combination of factors pushes AUD / USD higher for the third day in a row.
- Predominant risk appetite weighs on the safe-haven USD and supports the pair’s upward move.
- AUD gets additional boost following the release of Australian employment details.
The pair AUD/USD you have returned a portion of your intraday earnings, falling to the region of 0.7760 at the start of the European session on Thursday and after having reached an intraday high above 0.7775 earlier in the day.
The pair has built on this week’s good bounce in the 0.7660-55 region and gained some continuation traction for the third day in a row Thursday. The prevailing sentiment of risk appetite has continued to weigh on the safe-haven US dollar and benefited the higher perceived risk Australian dollar.
Global risk sentiment has remained supported by the hope that more aggressive fiscal spending under the presidency of Joe Biden boost economic growth. In fact, Biden launched a plan to inject $ 1.9 trillion into the struggling American economy during his first hours as the new president of the United States.
The Australian dollar received a further boost after the release of better-than-expected Australia employment details, which showed that the unemployment rate fell to 6.6% in December. The reading was below estimates that pointed to a drop to 6.7% and also marked the lowest level since April.
Further, the economy added 50,000 new jobs during the reported month. That said, a slowdown in full-time employment prevented the bulls from opening aggressive positions. This, in turn, has limited any uncontrolled bullish movement for the AUD / USD pair, which has now retraced around 20 pips from the daily highs.
Market participants are now looking forward to US macroeconomic data for near-term momentum. The US economic calendar features the release of the Philadelphia Fed Manufacturing Index, initial weekly jobless claims and housing market data, with building permits and home starts.
This, along with broader market risk sentiment, could influence USD price dynamics and generate some opportunities around the AUD / USD pair.
AUD / USD technical levels
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