AUD/USD advances to fresh multi-year highs above 0.7500

AUD/USD continues to push higher during American trading hours.
Renewed hopes for a US stimulus deal is boosting market sentiment.
US Dollar Index stays in negative territory below 91.00.

Eren Sengezer FXStreet

The AUD/USD pair extended its daily rally during the American trading hours and touched its highest level since June 2018 at 0.7528. As of writing, the pair was trading at 0.7515, gaining 0.95% on a daily basis.

Risk flows help AUD gather strength

The positive shift witnessed in market sentiment in the second half of the day seems to be providing a boost to risk-sensitive AUD. Although Wall Street's main indexes started the day deep in the negative territory, renewed optimism for a US coronavirus aid bill seems to be helping US stocks gains traction.

Earlier in the day, US Treasury Secretary Steven Mnuchin noted that a lot of progress was made regarding stimulus talks. On a similar note, House Speaker Nancy Pelosi said bipartisan negotiations on COVID-19 relief bill is making "great progress." Reflecting the upbeat market mood, the S&P 500 Index turned positive on the day.

On the other hand, the US Dollar Index stays below 91.00 on Thursday and allowing the AUD's market valuation to drive AUD/USD's movements.

Earlier in the day, the data from the US showed that the weekly Initial Jobless Claims increased by 137,000 to 853,000 but was largely ignored by market participants. Additionally, the core Consumer Price Index (CPI) in November stayed unchanged at 1.6% on a yearly basis as expected. There won't be any macroeconomic data releases from Australia on Friday.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7514
Today Daily Change	0.0072
Today Daily Change %	0.97
Today daily open	0.7442

Trends
Daily SMA20	0.7352
Daily SMA50	0.723
Daily SMA100	0.7218
Daily SMA200	0.689

Levels
Previous Daily High	0.7485
Previous Daily Low	0.7403
Previous Weekly High	0.745
Previous Weekly Low	0.7338
Previous Monthly High	0.7438
Previous Monthly Low	0.699
Daily Fibonacci 38.2%	0.7454
Daily Fibonacci 61.8%	0.7435
Daily Pivot Point S1	0.7402
Daily Pivot Point S2	0.7362
Daily Pivot Point S3	0.732
Daily Pivot Point R1	0.7483
Daily Pivot Point R2	0.7525
Daily Pivot Point R3	0.7565

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.

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