- AUD/USD kick-starts the week with a bounce defying late Friday’s pullback after a lacklustre week.
- Vaccine optimism gain momentum as J&J gets a go for usage, global leaders help India to battle pandemic.
- China’s tussle with the West escalate, NBC poll portrays support for Biden’s infrastructure spending plan.
- Off in Australia, New Zealand to limit market moves but risk catalyst remain as the key.
AUD/USD begins the week with a bounce to 0.7744 after a range-bound performance in the last week. Vaccine optimism and hopes of further stimulus back the bulls. However, worries over Beijing’s downbeat relations with the developed world and the coronavirus (COVID-19) woes in Asia test the upside momentum. Above all, the ANZAC Day holiday in Australia restricts the pair’s latest moves.
Off in Canberra to tame market reaction”¦
On Friday, the Centers for Disease Control and Prevention (CDC) and Food and Drug Administration (FDA) approved the restart of Johnson & Johnson’s JNJ COVID-19 vaccine for usage after blood clotting issues led to a 10-day pause to the key vaccine’s jabbing. Also, faster inoculation in Canada and Europe portrays vaccine optimism.
While observing faster vaccinations, the European Union (EU) is up for letting the US tourists visit the bloc this summer, per the New York Times (NYT).
However, the worsening virus conditions in India and Japan keeps the covid woes alive even as the US, Saudi Arabia and Russia showed readiness to instantly ship necessary medical supplies to battle the pandemic to New Delhi. At home, lockdown in Perth jostles with no new cases after Friday’s first infections in many.
On a different page, news from Reuters suggesting the US push to gather support against China’s move in Xinjiang can join the EU’s dislike for Beijing’s recent increase of military ships in the South China Sea to weigh on market sentiment.
Although the aforementioned catalyst should offer an active day, an off Australia and New Zealand amid ANZAC Day will restrict the AUD/USD moves amid a light calendar. It should, however, be noted that developments concerning the key risk events shouldn’t be undermined for immediate direction.
Technical analysis
Sustained trading above 100-day SMA, around 0.7700 by the press time, backs AUD/USD bulls to battle the 0.7765-70 hurdle.
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