AUD/USD draws bids as US stock futures rally

AUD/USD gains as uptick in the US stock futures boosts risk sentiment.
Rising coronavirus cases, fading prospects of US fiscal stimulus post downside risks.

Omkar Godbole FXStreet Contributor

The risk-on mood in the Asian equities and the US stock futures looks to be powering AUD/USD higher on Monday.

Aussie gains 0.25%

At press time, the AUD/USD pair is trading near 0.7732, representing a 0.25% gain on the day, alongside a 0.30% gain in the S&P 500 futures.

While growth-sensitive assets are rising, the gains could be short-lived, as the coronavirus pandemic is showing no signs of slowing down. As per Reuters, investors are becoming skeptical about US President Joe Biden's ability to muster Republican support to deliver the proposed $1.9 trillion fiscal package.

Data-wise, the focus is on the Aussie fourth-quarter Consumer Price Index scheduled for release on Wednesday. Weaker-than-expected inflation would put the question mark on the economic recovery and validate the Reserve Bank of Australia's dovish stance, possibly drawing offers for the Aussie dollar.

According to Reuters, AUD/USD's option premiums/implied volatility met renewed demand Friday, highlighting downside fears. From a technical analysis viewpoint, the bias remains neutral, with the exchange rate trapped in the last week's Doji candle's range of 0.7659-0.7782.

Technical levels

AUD/USD

Overview
Today last price	0.7732
Today Daily Change	0.0017
Today Daily Change %	0.22
Today daily open	0.7715

Trends
Daily SMA20	0.7718
Daily SMA50	0.7555
Daily SMA100	0.7364
Daily SMA200	0.7126

Levels
Previous Daily High	0.777
Previous Daily Low	0.7702
Previous Weekly High	0.7783
Previous Weekly Low	0.7658
Previous Monthly High	0.7743
Previous Monthly Low	0.7338
Daily Fibonacci 38.2%	0.7728
Daily Fibonacci 61.8%	0.7744
Daily Pivot Point S1	0.7688
Daily Pivot Point S2	0.766
Daily Pivot Point S3	0.7619
Daily Pivot Point R1	0.7756
Daily Pivot Point R2	0.7797
Daily Pivot Point R3	0.7825

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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