• AUD/USD faces rejection once again below 0.7300.
  • DXY remains softer amid risk-on mood, underpins Aussie.
  • Australian-Sino woes limit gains ahead of RBA Lowe’s speech.

AUD/USD consolidates its two-day advance below 0.7300, having failed a couple of attempts to recapture the latter earlier in the Asian session.

Despite the minor pullback, the sentiment around the higher-yielding aussie remains lifted by the optimism over the coronavirus vaccine and the ASEAN RCEP deal. Johnson & Johnson reported that it will experiment with the vaccine with 6,000 UK volunteers on a two-dose basis in a phase 3 trial.

This strengthened the euphoria around the vaccine, especially after Pfizer’s and Moderna’s trial success last week. The overall market optimism weighed on the safe-haven demand for the US dollar across the board, with the dollar index downed to near 92.50 levels.

Further, the optimism also came in from the ASEAN Summit, in which 15 Asia-pac economies signed the China-backed trade pact. The agreement moves towards multilateralism, which could help mitigate the crippling economic cost of the pandemic.  

The aussie also benefited from a rise in Chinese industrial production by 6.9% in October, pointing towards a sustained recovery in Australia’s closest trading partner.

Going forward, it remains to be seen if the spot recaptures the 0.7300 level, as mounting Australian-Sino trade tensions continue to weigh on the investors’ minds. Also, the US dollar could regain its footing should the covid stats spook markets once again.

Meanwhile, the immediate focus now remains on the RBA Governor Philip Lowe’s speech due today at 0840 GMT.

AUD/USD technical levels

“The first support level is 0.7200, followed by the 0.7120 price zone. A break below this last would expose the critical 0.7000 threshold. On the other hand, 0.7340 provides resistance, en route to the yearly high at 0.7411,” Valeria Bednarik, FXStreet’s Chief Analyst explained.

AUD/USD additional levels

AUD/USD

Overview
Today last price 0.7286
Today Daily Change 0.0015
Today Daily Change % 0.21
Today daily open 0.7271
 
Trends
Daily SMA20 0.7155
Daily SMA50 0.7174
Daily SMA100 0.7148
Daily SMA200 0.6825
 
Levels
Previous Daily High 0.7274
Previous Daily Low 0.722
Previous Weekly High 0.734
Previous Weekly Low 0.722
Previous Monthly High 0.7244
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7254
Daily Fibonacci 61.8% 0.7241
Daily Pivot Point S1 0.7237
Daily Pivot Point S2 0.7202
Daily Pivot Point S3 0.7183
Daily Pivot Point R1 0.729
Daily Pivot Point R2 0.7309
Daily Pivot Point R3 0.7344

 

 

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