- AUD / USD catches some aggressive buying on Tuesday and rises above the 0.7335-40 resistance.
- The Fed’s pessimistic expectations and prevailing risk appetite sentiment weigh on the safe-haven USD.
- Global risk sentiment remains supported by optimism about the COVID-19 vaccine.
The pair AUD/USD has risen above the 0.7335-40 resistance zone and has soared to the highest level since September 2 during the first half of the European session. At time of writing, the pair is holding around the 0.7350 level, having peaked at 0.7367.
A combination of support factors has helped the pair capture some new buying on Tuesday and confirm a short-term bullish breakout of the one-week range. The US dollar remains under pressure amid speculation of further monetary easing by the Fed. This, together with the prevailing sentiment of risk appetite, has provided an additional boost to the higher perceived risk Aussie.
Global risk sentiment remains supported by the latest optimism about a possible early launch of the coronavirus vaccine. Market optimism received an additional boost with the news that the president-elect of the United States, Joe Bidenon Monday received the go-ahead to begin his transition to the White House, which has weighed even more on the safe-haven U.S. dollar.
Apart from this, the strong bullish movement on Tuesday could be attributed to some technical buying above the strong horizontal resistance at 0.7335-40. The fact that the AUD / USD pair has found acceptance above the aforementioned barrier may cause the bulls to now aim to regain the 0.7400 level. The up move could extend towards the yearly highs, around the 0.7415 region reached in August.
Market participants are now awaiting the US economic calendar, featuring the Conference Board Consumer Confidence Index and Richmond Fed Manufacturing Index releases, to be released at the start of the US session. This, along with broader market risk sentiment, will influence USD price dynamics and help investors seize some short-term opportunities.
AUD / USD technical levels
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