AUD/USD consolidating gains at five-week highs above 0.7400


 

  • The aussie extends rally to five-week highs at 0.7440.
  • A higher risk appetite has boosted the Australian dollar.
  • AUD/USD is heading towards 0.7450.

The Australian dollar has rallied for the fifth consecutive day on Friday, extending its rebound from 0.7170 lows in late September, to five-week highs at 0.7440, before pulling back and consolidating in the 0.7415/20 area.

Risk appetite has boosted the AUD

An improved market sentiment, with the stock markets advancing for the second consecutive day, fuelled by upbeat quarterly earnings by major banks and better than expected US retail sales, has favored the risk-sensitive Aussie, weighing on safe assets like the US dollar.

Beyond that, the relaxation of COVID-19 restrictions in Sydney, the country’s most populated city, after a four-month lockdown has improved optimism. Australian authorities have pledged that the quarantine required for vaccinated travelers that arrive in New South Wales would not be necessary since November 1, as the New South Wales state is set to reach an 80% first-vaccination dose rate on Saturday.

Furthermore, the Chinese central bank (PBoC) has finally assured that Evergrande’s risks to the financial system are “controllable” and unlikely to spread which has eased concerns about a chain reaction affecting the financial sector of the world’s second-largest economy.

AUD/USD heading towards 0.7450 – UOB

According to the FX analysis team at UOB, the pair is heading towards 0.7450: “There is no change in our view even though AUD could consolidate for a couple of days first before heading towards 0.7450. On the downside, a break of the ‘strong support’ at 0.7350 (level was at 0.7325 yesterday) would indicate that the current positive phase has come to an end.”

Technical levels to watch

AUD/USD

Overview
Today last price 0.742
Today Daily Change 0.0004
Today Daily Change % 0.05
Today daily open 0.7416
 
Trends
Daily SMA20 0.7285
Daily SMA50 0.7306
Daily SMA100 0.7416
Daily SMA200 0.7572
 
Levels
Previous Daily High 0.7428
Previous Daily Low 0.7372
Previous Weekly High 0.7339
Previous Weekly Low 0.7226
Previous Monthly High 0.7478
Previous Monthly Low 0.717
Daily Fibonacci 38.2% 0.7406
Daily Fibonacci 61.8% 0.7393
Daily Pivot Point S1 0.7382
Daily Pivot Point S2 0.7349
Daily Pivot Point S3 0.7326
Daily Pivot Point R1 0.7439
Daily Pivot Point R2 0.7462
Daily Pivot Point R3 0.7495

 

 

 

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