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.

Eren Sengezer FXStreet

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

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.