- AUD/USD gained traction for the second consecutive session on Thursday amid weaker USD.
- The underlying optimistic mood continued to undermine the greenback’s safe-haven demand.
- Relatively thin liquidity conditions might hold investors from placing aggressive bullish bets.
The AUD/USD pair edged higher through the Asian session on Thursday, with bulls awaiting a sustained move beyond the 0.7600 mark round-figure mark.
The pair built on the previous day’s positive move and continued gaining traction for the second consecutive session on Thursday amid the prevalent US dollar selling bias. The latest optimism about an imminent post-Brexit trade deal overshadowed the US President Donald Trump’s threat to not sign a long-awaited $892 billion COVID-19 stimulus bill.
Adding to this, the reopening of UK-France border signalled a step back toward normality after the discovery of a new variant of the coronavirus in Britain and boosted investors’ confidence. This was evident from a positive trading sentiment around the equity markets, which, in turn, was seen as one of the key factors undermining the USD’s safe-haven demand.
Despite the supporting factors, the AUD/USD pair remained below weekly tops as investors now seemed reluctant to place any aggressive bets amid relatively thin liquidity conditions ahead of the Christmas break. In the absence of any major market-moving economic releases, the pair is more likely to witness a subdued/range-bound price action on Thursday.
That said, the incoming Brexit-related headlines and developments surrounding the coronavirus saga might continue to infuse some volatility in the global financial markets. This should influence the USD price dynamics and produce some short-term opportunities around the AUD/USD pair.
Technical levels to watch
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