AUD/USD struggles to hold 0.7700 amid risks recovery, off in Australia
|- AUD/USD snaps two-day losing streak, while extending bounce off one-week low, despite recently easing from intraday top.
- Vaccine news battles uncertainty over the US stimulus, mixed headlines from China gets less audience.
- US Senate Confirms Jannet Yellen as Treasury Secretary,
- No major data up for publishing amid Australia Day off, updates concerning virus/vaccine and US aid package will be important.
AUD/USD wavers around 0.7715, off intraday high near 0.7720, during the initial Asian trading session on Tuesday. In doing so, the aussie pair struggles to keep 0.7700 while defying the successive declines in the last two days. The reason for the pair’s mixed trading could be traced from the holiday in Australia and a lack of clear risk catalysts elsewhere, not to forget a light calendar.
Risks dwindle despite recent boost…
Latest updates from Moderna and AstraZeneca favored vaccine hopes, even concerning the coronavirus (COVID-19) variants, while news from Israel also suggests a recovery in health following the vaccinations. The news derails the earlier skepticism over the cure to the pandemic.
Read: Covid-19 Vaccine Update: Moderna vaccine effective against UK, SA strains and promising Israeli data
Even so, the risks remain sluggish and the S&P 500 Futures look for a clear direction around 3,850 as doubts over the US fiscal stimulus prevail. US policymakers are jostling over President Joe Biden’s $1.9 trillion relief package amid chatters over a delay in the much-awaited economic aid.
Elsewhere, Australia’s largest customer China surpasses the US when it comes to foreign investments. Though, a Chinese media report marking a proposal to permanently reduce the GDP target dims the earlier optimism.
It’s worth mentioning that Janet Yellen is formally announced as the US Treasury Secretary after the American Senate voted in favor of the decision. The news should ideally help the risks as Yellen recently praised easy money policies.
Given the lack of major data/events on the Asian economic calendar, AUD/USD traders will keep their eyes on the risk catalysts for fresh impulse. In doing so, the latest vaccine hopes and Yellen’s selection can keep the buyers hopeful.
Technical analysis
The symmetrical triangle established since January 04, currently between 0.7665 and 0.7775, restricts short-term AUD/USD moves.
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