AUD/USD jumps to fresh multi-week tops, around 0.7380 region

AUD/USD caught some fresh bids on Friday and broke out of the overnight trading range.
COVID-19 vaccine optimism undermined the safe-haven USD and remained supportive.
Move beyond the 0.7365-70 region might have already set the stage for additional gains.

Haresh Menghani FXStreet

The AUD/USD pair edged higher through the Asian session on Friday and shot to the highest level since early September, around the 0.7380-85 region in the last hour.

The pair caught some fresh bids on the last day of the week and finally broke out of its overnight consolidative trading range amid a softer tone surrounding the US dollar. The optimism over the progress on remedies for the highly contagious coronavirus disease continued undermining the safe-haven greenback.

Meanwhile, concerns about the economic fallout from the continuous surge in COVID-19 cases resurfaced after Wednesday's unimpressive US macro data. The unexpected jump in the US Initial Jobless Claims raised expectation for more fiscal stimulus from the incoming Biden administration and exerted some additional pressure on the buck.

The USD was further pressured by a fresh leg down in the US Treasury bond yields. This, along with the prevalent upbeat market mood, further benefitted the perceived riskier Australian dollar and pushed the AUD/USD pair beyond the 0.7365-70 supply zone. This, in turn, might have already set the stage for additional near-term gains.

Hence, some follow-through strength beyond the 0.7400 mark, towards retesting September monthly swing around the 0.7415 region, now looks a distinct possibility. In the absence of any relevant macro data from the US, the broader risk sentiment will influence the USD price dynamics and produce some short-term trading opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price	0.738
Today Daily Change	0.0022
Today Daily Change %	0.30
Today daily open	0.7358

Trends
Daily SMA20	0.7259
Daily SMA50	0.7182
Daily SMA100	0.7182
Daily SMA200	0.6853

Levels
Previous Daily High	0.7375
Previous Daily Low	0.7352
Previous Weekly High	0.734
Previous Weekly Low	0.7254
Previous Monthly High	0.7244
Previous Monthly Low	0.7002
Daily Fibonacci 38.2%	0.7361
Daily Fibonacci 61.8%	0.7366
Daily Pivot Point S1	0.7348
Daily Pivot Point S2	0.7339
Daily Pivot Point S3	0.7326
Daily Pivot Point R1	0.7371
Daily Pivot Point R2	0.7384
Daily Pivot Point R3	0.7393

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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