AUD/USD sidelined despite progress in US fiscal stimulus talks

AUD/USD trades little changed even as Asian stocks track US equities higher.
Dollar stays resilient amid the steepening of the US yield curve.

Omkar Godbole FXStreet Contributor

AUD/USD struggles to gather upside traction despite improving prospects for additional US fiscal stimulus and stock market gains.

The pair is currently trading largely unchanged on the day near 0.7118, having faced rejection at a one-week high of 0.7139 early Friday.

Risk-on

The US stocks charted gains on Thursday after the US House of Representatives Speaker Nancy Pelosi said officials were making progress in fiscal stimulus talks, and legislation could be hammered out "pretty soon.

Asian stocks are also tracking the US equities higher. Japan's Nikkei index is up 0.3%, while the Shanghai Composite has so far added 0.15%. President Donald Trump said a coronavirus vaccine could be announced in a few weeks during the second presidential debate held an hour ago.

Even so, the anti-risk dollar is staying resilient. The continued steepening of the US treasury yield curve could be helping the US dollar stay resilient amid the risk-on action in the stock markets. The spread between the US 10- and two-year yields widened to over 80 basis points early today to reach the highest level in over four months.

Technical levels

AUD/USD

Overview
Today last price	0.7118
Today Daily Change	0.0000
Today Daily Change %	-0.00
Today daily open	0.7118

Trends
Daily SMA20	0.7131
Daily SMA50	0.7199
Daily SMA100	0.7105
Daily SMA200	0.6793

Levels
Previous Daily High	0.7126
Previous Daily Low	0.7084
Previous Weekly High	0.7242
Previous Weekly Low	0.7055
Previous Monthly High	0.7414
Previous Monthly Low	0.7004
Daily Fibonacci 38.2%	0.711
Daily Fibonacci 61.8%	0.71
Daily Pivot Point S1	0.7093
Daily Pivot Point S2	0.7068
Daily Pivot Point S3	0.7051
Daily Pivot Point R1	0.7134
Daily Pivot Point R2	0.7151
Daily Pivot Point R3	0.7176

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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