AUD / USD rises to fresh six-day highs above 0.7650 as USD selloff continues

• AUD / USD is still on track to post strong gains on Monday.
• The US dollar index lost traction in the US session.
• The main Wall Street indices rise sharply after the release of optimistic data from the US.

After staying relatively quiet around 0.7600 in the first half of the day, the pair AUD/USD it gained traction and touched its highest level since March 30 at 0.7661. At time of writing, the AUD / USD was up 0.66% on the day at 0.7656.

Strong selling pressure surrounding the dollar fueled the AUD / USD rally on Monday. The US dollar index, which tracks the performance of the USD against a basket of six major currencies, fell to its lowest level in more than two weeks at 92.54.

Risk appetite from the release of strong data made it difficult for the USD to find demand as the S&P 500 and Dow Jones Industrial Average indices hit new all-time highs after the opening bell.

Following Friday’s impressive jobs report, which showed a 916,000 rise in nonfarm payrolls in March, the ISM reported Monday that the services PMI jumped to its best ever at 63.7 from 55.3 in February.

Focus shifts to RBA

In the early trading hours of the Asian session, the Reserve Bank of Australia (RBA) will announce its Interest Rate Decision and publish the Rate Statement.

Previewing the RBA meeting, “We believe the RBA will keep the policy setting unchanged at the April 6 meeting,” said analysts at Capital Economics. “Later this year, we expect the Bank to announce a further extension of its asset purchase program. We believe the market is overly enthusiastic on pricing for rate increases next year.”

Technical levels