AUD / USD returns above 0.7200, approaching nearly four-week highs

• AUD / USD gains traction for the fourth consecutive session on Thursday favored by a weaker USD.
• Biden’s victory in the US election is probably seen as a key factor weighing on the dollar.
• The bullish market mood further undermines the safe haven dollar and continues to support the Australian dollar.

The prevailing selling bias surrounding the dollar pushed the pair AUD/USD again above the 0.7200 mark, rising to daily highs at 0.7219 and closer to the nearly four-week highs set at 0.7222 on Wednesday.

The expectations that Democratic hopeful Joe Biden will be the next president of the United States, along with the ongoing sharp decline in U.S. Treasury yields, continue to put some pressure on the US dollar. Aside from this, the bullish market mood, as shown by a strong follow-up rally in US equity futures, provided an additional boost to the Aussie, more associated with risk.

Meanwhile, the end result still depends on the vote count of some remaining states. This, coupled with the fact that incumbent President Donald Trump has already filed lawsuits and a recount in several key states could prevent investors from positioning themselves for a big move in either direction. This, in turn, could contain the strong gains of the AUD / USD pair.

On the agenda for the day, market participants are looking forward to the release of weekly jobless claims data. This, coupled with US political developments, will influence USD price dynamics. Later during the US session, the FOMC monetary policy announcement will also be relevant for some significant trading opportunities around the AUD / USD pair.