AUD/USD pierces 0.7800 as US President Biden lauds covid efforts, promises faster recovery
|- AUD/USD refreshes one week top during the four-day winning streak.
- Biden eyes vaccine for all American by May 01, back to normal before July.
- Vaccine news battle US-China and Canberra-Beijing tussle but nothing could beat risks after US stimulus.
- US data will be eyed, risk catalysts remain on the driver’s seat.
AUD/USD takes the bids near 0.7800, currently up 0.10% intraday, during the early Friday. The aussie pair recently benefited from US President Joe Biden’s prime-time speech while the early Asian risk catalyst and the US $1.9 trillion covid stimulus offered the initial favor to the quote in rising for the fourth consecutive day.
US President Joe Biden showed readiness to recover faster from the pandemic and promised vaccines to all the American adults by May 01. His extra optimism also pushed the Democratic Party member to hint “back to normal” life by July. However, concerns surrounding employment status seem to dim the market’s reaction to the key event.
Read: US President Biden: Stimulus to fuel faster US recovery; jobs outlook still dull
Other than the speech, official updates from the Novavax, concerning capacity to tame the UK covid variants, joined US President Biden’s signals to shore up ties with allies in Asia also favored the mood. It should be noted that market rumors surrounding the $2.5 trillion US infrastructure plan in April also helped the AUD/USD bulls.
On the contrary, the US hardships for Huawei suppliers and Australia’s dislike for the human rights violations in Hong Kong probe the risk-takers. Also on the negative side could be AstraZeneca’s inability to meet targets for the EU vaccine delivery.
Amid these plays, stocks in Asia-Pacific stay bid whereas S&P 500 Futures and the US 10-year Treasury yields print mild gains by the press time.
Looking forward, a light calendar directs AUD/USD traders to keep eyes on the US Michigan Consumer Sentiment figures for March, expected 78.5 versus 76.8 prior, for fresh impulse. However, risk catalysts remain as the key drivers.
Read: US Michigan Consumer Sentiment March Preview: The post-COVID blues
Technical analysis
Having successfully regained past-50-day SMA, currently around 0.7740, January’s top near 0.7820 and the monthly peak surrounding 0.7840 will test the AUD/USD upside.
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