AUD/USD: Bulls look to 0.7200 despite volatile markets on US elections

AUD/USD picks up bids around 0.7180 at the start of Thursday’s Asian session. In doing so, the aussie pair attacks the previous day’s high of 0.7222, also the multi-day top, while extending the U-turn from 0.7048 flashed earlier on Wednesday. The pair recently gained bids as the US election polls flashed another green signal for the Democratic candidate Joe Biden. However, receding odds of a blue wave probe the bulls.

Biden inches closer to 270…

With the recent victory in Michigan, as reported by CNN, Biden gets 253 counts versus nearly 215 figures for President Donald Trump. The race to the White House gets nail-biting with Trump’s push for recounts in Wisconsin while probing vote counts in Pennsylvania.

Read: Biden wins Michigan

Although the Democrats are proving the market forecasts right, favoring the equities with the hopes of further monetary easing, expectations of a blue wave, a condition of Democrats governing in both the houses, have dimmed. As a result, the US treasury yields have softened off-late.

The economic calendar was mostly ignored but could manage to flash positive data for the AUD/USD prices. Details suggest that Aussie Retail Sales recovered in September whereas October month’s US ADP Employment Change and ISM Services PMI weakened more than expected.

Looking forward, updates from the American voters will be the key as around seven states are still in the pipeline for declaring a clear winner. However, September month’s trade numbers from Australia can also offer intermediate moves and hence shouldn’t be missed.

Technical analysis

A daily closing above a 2.5-month-old falling trend line needs validation from 50-day SMA, currently around 0.7180, to retake the 0.7200 threshold. On the contrary, the resistance-turned-into-support line, at 0.7139 now, becomes the key level short-term level to watch for the bear’s entry.