AUD/USD: Refreshes three-year high to inch closer to 0.8000 amid broad risk-on mood


  • AUD/USD rises to fresh high since February 2018, up for sixth day.
  • Market sentiment buoyed as Fed policymakers reject reflation fears by closing doors to abrupt policy change.
  • Wall Street cheers easy money, US dollar drops.
  • Australia’s Q4 Private Capital Expenditure decorates calendar, risk signals are the key.

AUD/USD marks another push to grab the 0.8000 threshold by rising to the fresh highs in 36 months, currently around 0.7970, during the initial Asian session on Thursday. The aussie pair followed upbeat sentiment while cheering the central bankers’ firm support to the easy money policy and rejecting the reflation fears.

Fed turns down fears of policy tightening…

By firmly supporting the current monetary policy, also turning down abrupt moves without enough prior notice and confirmation from data, Fed policymakers managed to renew market optimism. Not only Federal Reserve Chairman Jerome Powell reiterated his bearish bias but Vice Chair Richard Clarida and Fed Governor Lael Brainard also backed the move that pushed back chatters over monetary policy tightening.

This helped equities and bond yields to rally while the US dollar index (DXY) snapped Tuesday’s corrective pullback by the end of Wednesday’s North American trading. Also portraying the risk-on mood could be the rally in commodities.

Furthermore, news that Pfizer-BioNTech vaccines have 94% effectiveness after two doses, per Reuters, adds to the market optimism.

Looking forward, AUD/USD traders will have to take clues from the risk catalysts as scheduled economic data needs to be extremely different, due to its second-tier character, to wobble the pair.

Technical analysis

Unless breaking below the highs marked during October 2017 and March 2018, around 0.7900, AUD/USD is less likely to probe the rally towards the 0.8000 psychological magnet.

Additional important levels

Overview
Today last price 0.7966
Today Daily Change 52 pips
Today Daily Change % 0.66%
Today daily open 0.7914
 
Trends
Daily SMA20 0.7727
Daily SMA50 0.7701
Daily SMA100 0.7481
Daily SMA200 0.7267
 
Levels
Previous Daily High 0.7936
Previous Daily Low 0.788
Previous Weekly High 0.7878
Previous Weekly Low 0.7724
Previous Monthly High 0.782
Previous Monthly Low 0.7592
Daily Fibonacci 38.2% 0.7914
Daily Fibonacci 61.8% 0.7901
Daily Pivot Point S1 0.7884
Daily Pivot Point S2 0.7853
Daily Pivot Point S3 0.7827
Daily Pivot Point R1 0.794
Daily Pivot Point R2 0.7966
Daily Pivot Point R3 0.7997

 

 

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