- AUD / USD celebrates the arrival of the Covid vaccine in Australia and the strength of the Yuan.
- The US dollar remains weak overall amid sentiment for risk appetite.
- A low volume day due to a holiday could contribute to the bullish momentum.
After a brief consolidation stage at the start of the Asian session, the AUD / USD has captured a new wave of buying, approaching the 0.7800 barrier amid broader market optimism.
The appetite for risk remains elevated amidst the Positive developments on the coronavirus vaccine front all over the world. AUD bulls celebrate the arrival of the first shipments of the Pfizer vaccine for covid-19 in Australia, while vaccination is likely to begin later this month.
Markets have ignored news of a new blockade announced in New Zealand amid traces of the UK’s new strain of covid. The general weakness of the US dollar and the S&P 500 futures rally they have continued to bode well for the AUD / USD pair.
The pair could probably benefit from the low-volume day for a holiday and the strength of the Chinese yuan, as technical data continues to point higher.
AUD / USD daily chart
The AUD/USD seeks to recover the level of 0.7800 at the start of the European session on Monday, above which horizontal resistance could be challenged in 0.7820. A sustained breakout of this level could target the barrier of 0.7850.
The 14-day RSI is pointing higher while above the midline, which suggests that there is room for the further rise. The pair is also moving on all the major simple moving averages in said time period.
On the other hand, one could test the Friday low of 0.7718, below which the 21-day SMA in 0.7697 it would be on the bears’ radar.
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