AUD/USD moves back closer to Wednesday YTD tops, around 0.7220 level
|- AUD/USD moves back into the positive territory for the third consecutive session on Thursday.
- The USD remained depressed amid growth concerns, fiscal impasse, declining US bond yields.
- The upbeat market mood further benefitted the perceive riskier aussie and remained supportive.
The AUD/USD pair bounced around 45-50 pips session lows and refreshed daily tops, around the 0.7220 region in the last hour.
The pair quickly reversed an early North American session dip to the 0.7175 region and has now moved back into the positive territory for the third consecutive session. The US dollar struggled to capitalize on its attempted recovery move from two-year lows amid the ongoing slide in the US Treasury bond yields.
In fact, the yield on the benchmark 10-year US government bond dropped back closer to an all-time closing low level of 0.501% amid doubts over the pace of the US economic recovery. Adding to this, the deadlock in the US Congress over the next round of the fiscal stimulus measures further undermined the greenback.
The US Senate Majority Leader Mitch McConnell told CNBC this Thursday that lawmakers are still at odds about how much coronavirus aid is appropriate. McConnell further added that somehow lawmakers will resolve their differences and expects a stimulus deal in the near future, albeit did little to impress the USD bulls.
Apart from this, the upbeat market mood – as depicted by a bullish trading sentiment around the US equity markets – provided an additional boost to the perceived riskier Australian dollar. The AUD/USD pair has now moved back closer to YTD tops set on Wednesday, which if cleared should pave the way for additional gains.
However, investors might refrain from placing aggressive bets, rather prefer to wait on the sidelines ahead of Friday's closely watched official US monthly jobs report (NFP). This, in turn, might keep a lid on any runaway rally for the major, at least for the time being.
Technical levels to watch
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