AUD/USD eyes Wednesday’s high of 0.6945 amid USD weakness, NFP in focus
|- AUD/USD bulls look to re-take 0.6950 once again.
- Australian PM Morrison’s comments on HK shrugged-off?
- Eyes on risk trends ahead of the US payrolls data.
AUD/USD is breaking its Asian consolidation to the upside in the early European dealings, as the US dollar extends Wednesday’s decline across its main competitors amid persistent strength in the global stocks.
Encouraging US Manufacturing data released in the US last session combined with coronavirus vaccine hopes bolstered the ongoing Wall Street rally and dulled the US dollar’s safe-haven appeal. The US dollar index drops 0.18% to a fresh six-day low of 97.02, at the press time.
The further advance in the S&P 500 futures appears to fuel the latest move higher in the aussie. The spot hit a daily low of 0.6905 after Australian Prime Minister (PM) Scott Morrison’s comments over the Hong Kong issue briefly dragged the local currency lower.
PM Morrison confirmed that his country is prepared to 'step up and support' Hong Kong citizens, which is likely to add to the simmering tensions between Australia and China over the last few months.
Further, stricter measures enforced in Victoria, amid surging virus cases in the no.2 populous state of Australia, and dismal trade figures kept the bulls on the defensive.
The focus now shifts towards the key US Non-Farm Payrolls (NFP) data due later today at 1230 GMT for fresh direction on the greenback and, in turn, on the major. In the meantime, the sentiment on the European stocks will influence the spot.
AUD/USD technical levels
Having defended 0.6900, the AUD/USD buyers look to take out Wednesday high of 0.6945 en route the 0.7000 mark. To the downside, 0.6895 (A$1.8 billion option expiries) will offer the initial support, below which the psychological level of 0.6850 could be tested.
AUD/USD additional levels
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