- AUD/USD cheers risk-on mood-led USD weakness, Aussie jobs.
- US stimulus hopes, dovish Fed weigh negatively on the greenback.
- Focus shifts to US weekly jobs data and stimulus updates.
AUD/USD challenges the 0.7600 level, extending its four-day winning streak into European trading. The pair sits at the highest levels since June 2018, underpinned by the market optimism and ongoing US dollar sell-off.
The US dollar’s slide can be mainly attributed to the optimism over the progress on a US $900 billion covid aid package. Meanwhile, the Fed’s dovish take on the inflation and employment outlook also adds to the weight on the buck,
The US dollar index trades at the weakest level in two-and-a-half years, now challenging the 90 level, down 0.48% on the day.
The aussie bulls also cheer strong Australian employment data, which showed that the country’s jobless rate fell to 60.8% in November while seeing the addition of a bigger-than-expected job of 90K. The upbeat jobs report eases the pressure off the RBA to deploy additional easing measures.
Moreover, markets took note of the comments from the Australian Treasurer Josh Frydenberg on the trade issues with China, as he presented the Mid-Year Economic and Fiscal Outlook (MYEFO) earlier today.
From a broader perspective, easing dovish RBA expectations, vaccine and US stimulus optimism will continue to bode well for the higher-yielding aussie, as we head towards the year-end holiday season.
In the meantime, the updates on a potential US aid package deal and weekly jobless claims data will be closely eyed for near-term trading opportunities in the major.
AUD/USD technical levels
“AUD/USD bulls need a clear break above 0.7585 to confirm the stated bullish formation. Also acting as an upside barrier is the 0.7600 round-figure. Meanwhile, a pullback move below 100-HMA, at 0.7548 now, negates the bullish chart and can direct the short-term AUD/USD sellers toward the weekly low near 0.7500,” explains FXStreet’s Analyst Anil Panchal.
AUD/USD additional levels
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