- AUD/USD caught some aggressive bids on Tuesday amid notable USD supply.
- The prevalent risk-on mood weighed heavily on the USD’s safe-haven status.
- Technical buying above 0.6600 mark contributed to the intraday momentum.
The heavily offered tone surrounding the greenback lifted the AUD/USD pair back above the 0.6600 round-figure mark, to its highest level since March 9.
The optimism over a global economic recovery from the coronavirus pandemic and a potential COVID-19 vaccine helped offset concerns about a further escalation in the US-China tensions. This, in turn, provided a strong lift to the global risk sentiment and prompted some aggressive selling around the safe-haven US dollar.
The upbeat market mood provided an additional boost to riskier currencies, including the aussie, and remained supportive of the AUD/USD pair strong bid tone. The intraday rally of around 90 pips took along some trading stops near the 0.6600 mark, which further contributed to the pair’s sudden spike over the past hour or so.
It will now be interesting to see if bulls are able to capitalize on the momentum or opt to take some profits off the table. Slightly overbought conditions on hourly charts warrant some near-term consolidation or a modest pullback before traders again start positioning for the next leg up.
Moving ahead, market participants now look forward to the release of the Conference Board’s Consumer Confidence Index. The data might influence the USD price dynamics and produce some short-term trading opportunities during the early North American session.
Technical levels to watch
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