AUD/USD advances beyond 0.7300 supported by risk flows


  • AUD/USD gained traction ahead of the American session.
  • Upbeat market mood helps AUD gather strength on Friday.
  • US Dollar Index stays unchanged on the day near 93.30.

After spending the majority of the day fluctuating in a relatively tight range below 0.7300, the AUD/USD pair started to push higher and touched a daily top of 0.7316. As of writing, the pair was up 0.35% on the day at 0.7312. On a weekly basis, AUD/USD remains on track to close modestly higher. 

Coronavirus vaccine headlines keep the mood upbeat

The positive shift witnessed in the market mood during the European session seems to be helping the AUD gather strength. Pfizer and BioNTech announced on Friday that they will be seeking emergency-use authorization for their coronavirus vaccine from the US Food and Drug Administration (FDA) on Friday. Additionally, the companies noted that they have vaccines ready for delivery within hours after they receive approval.

Reflecting the risk-on market environment, major European equity indexes are up around 0.5% on the day and the S&P 500 Futures, which dropped as much as 0.4% earlier in the day, is flat.

On the other hand, the US Dollar Index edged lower and turned flat near 92.30 after climbing above 92.40 earlier in the day and allowed AUD/USD's bullish momentum to remain intact. 

There won't be any macroeconomic data releases from the US in the remainder of the day and the risk perception is likely to remain the primary driver of AUD/USD's movements. If Wall Street's main indexes manage to keep a firm footing ahead of the weekend, the greenback could continue to weaken against its rivals.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7314
Today Daily Change 0.0019
Today Daily Change % 0.26
Today daily open 0.7295
 
Trends
Daily SMA20 0.7198
Daily SMA50 0.7178
Daily SMA100 0.7164
Daily SMA200 0.6837
 
Levels
Previous Daily High 0.7308
Previous Daily Low 0.7254
Previous Weekly High 0.734
Previous Weekly Low 0.722
Previous Monthly High 0.7244
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7274
Daily Fibonacci 61.8% 0.7287
Daily Pivot Point S1 0.7263
Daily Pivot Point S2 0.7231
Daily Pivot Point S3 0.7209
Daily Pivot Point R1 0.7318
Daily Pivot Point R2 0.734
Daily Pivot Point R3 0.7372

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD advances after US PCE inflation

EUR/USD pressures weekly highs as US core PCE inflation jumped to 3.4% YoY in May, as expected. High yielding assets accelerate their advances to the detriment of the greenback, as government bond yields hold steady.

EUR/USD News

GBP/USD battles with 1.3900, still affected by BOE’s decision

GBP/USD remains depressed around 1.3900, pressured by the dovish BOE's surprise offsetting the renewed weakness in the US dollar. Worsening market mood amid Delta covid strain concerns weigh on the pound

GBP/USD News

XAU/USD rises towards key $1794 resistance ahead of US PCE inflation

Gold is picking up the bid tone in European trading, taking advantage of the retreat in the US Treasury yield and the dollar across the curve. 

Gold News

SafeMoon Price Prediction: SAFEMOON ponders 25% advance

SafeMoon price has underperformed relative to top altcoins but is preparing for a move higher. A retest of the range low at $0.00000257 seems likely before SAFEMOON catapults.

Read more

US PCE inflation preview: Data likely to reaffirm FOMC's hawkish tilt

The US Bureau of Economic Analysis will release the PCE inflation report on Friday, June 25. Markets expect the Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, to rise to 3.4% on a yearly basis in May from 3.1% in April.

Read more

Forex MAJORS

Cryptocurrencies

Signatures