AUD/USD extends recovery above 0.7800, focus on US data, Powell


  • AUD/USD sits at daily highs above 0.7800 but bulls lack follow-through.
  • Upbeat Australian trade data and vaccine progress outweigh firmer T-yields, DXY.
  • The aussie looks to US data, Powell’s critical speech for fresh impetus.

AUD/USD holds the higher ground above 0.7800, extending the recovery gains in early European trading.  

The aussie has staged a solid turnaround so far this Thursday, recovering from a daily low of 0.7753 reached in early Asia. The rebound in the spot could be mainly attributed to Australia’s record high trade surplus, as markets shrugged off the downbeat Retail Sales and the risk-off market mood.

The progress in Australia’s covid vaccine rollout also adds to the bullish tone around the aussie dollar. Prime Minister Scott Morrison said earlier on that the AstraZeneca vaccine rollout will begin from Friday.

Further, a bounce in the commodities complex, especially in gold and oil prices, renders positive for resource-linked aussie. The AUD bulls also cheered the comments from the RBA's Head of Financial Stability Kearns, citing that the house price gains are not a concern right now.

Meanwhile, the major stands resilient to the renewed upside in the Treasury yields, which is boding well for the US dollar when compared to its main competitors. Also, the risk-off trading on the global equities failed to deter the bulls. The S&P 500 futures dropped as much as 0.50%, now recovering above 3,800 points.

The main focus for Thursday’s trading remains the Fed Chair Powell’s speech, as markets are expecting him to offer some comments on the recent rise in the yields and implications for the monetary policy.

In the meantime, traders will keep an eye on the risk sentiment and US weekly jobless claims for trading incentives.

AUD/USD: Technical outlook

“… acting as an upside barrier is the weekly top surrounding 0.7840, a break of which will quickly propel the run-up to February’s peak near 0.8010. During the rise, the 0.7900 threshold can offer a breather to the AUD/USD bulls. Meanwhile, a downside break of 200-bar SMA level of 0.7744 needs validation from the one-month-old support line and the previous week’s low, respectively around 0.7727 and 0.7691, to recall the AUD/USD sellers,” FXStreet’s Anil Panchal notes.

AUD/USD: Additional levels

AUD/USD

Overview
Today last price 0.7811
Today Daily Change 0.0027
Today Daily Change % 0.35
Today daily open 0.7783
 
Trends
Daily SMA20 0.7781
Daily SMA50 0.7729
Daily SMA100 0.7519
Daily SMA200 0.7304
 
Levels
Previous Daily High 0.7838
Previous Daily Low 0.777
Previous Weekly High 0.8008
Previous Weekly Low 0.7692
Previous Monthly High 0.8008
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7796
Daily Fibonacci 61.8% 0.7812
Daily Pivot Point S1 0.7757
Daily Pivot Point S2 0.773
Daily Pivot Point S3 0.7689
Daily Pivot Point R1 0.7824
Daily Pivot Point R2 0.7865
Daily Pivot Point R3 0.7892

 

 

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