AUD/USD rises from three-day lows to 0.6765 as risk appetite improves
|- Wall Street up sharply, Dow Jones gains more than 300 points.
- Improvement in risk sentiment boosts the Australian Dollar.
- AUD/USD moving without a clear direction, Aussie needs a confirmation above 0.6770.
The AUD/USD pair rebounded from levels near 0.6700 and printed a fresh daily low at 0.6764 during the American session amid a rally in equity prices in Wall Street.
The improvement in the demand for riskier assets in US markets weighed on the US Dollar that reversed its course, turning negative. The Dow Jones is up by 1.03% or 330 points while the Nasdaq climbs by more than 2%. US yields are moving without a clear direction, holding near recent highs. The US 10-year yield stands at 3.86% and the 2-year at 4.375.
US economic data released on Thursday showed Initial Jobless Claims rose to 225K during the week ended December 24, in line with expectation; Continuing Claims rose to 1.71 million, the highest level since February. On Friday, the Chicago PMI is due. In Australia will be a holiday.
The 0.6765/70 holds the upside
The AUD/USD is moving sideways. On the downside, the pair again found support above the 0.6700 area. A break lower could trigger an acceleration, targeting initially 0.6675.
If the Aussie manages to rise and hold firm above 0.6770 it would gain momentum, likely rising to test the weekly high area at 0.6800.
Technical levels
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