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  • AUD/USD gains as uptick in the US stock futures boosts risk sentiment. 
  • Rising coronavirus cases, fading prospects of US fiscal stimulus post downside risks. 

The risk-on mood in the Asian equities and the US stock futures looks to be powering AUD/USD higher on Monday. 

Aussie gains 0.25%

At press time, the AUD/USD pair is trading near 0.7732, representing a 0.25% gain on the day, alongside a 0.30% gain in the S&P 500 futures. 

While growth-sensitive assets are rising, the gains could be short-lived, as the coronavirus pandemic is showing no signs of slowing down. As per Reuters, investors are becoming skeptical about US President Joe Biden’s ability to muster Republican support to deliver the proposed $1.9 trillion fiscal package. 

Data-wise, the focus is on the Aussie fourth-quarter Consumer Price Index scheduled for release on Wednesday. Weaker-than-expected inflation would put the question mark on the economic recovery and validate the Reserve Bank of Australia’s dovish stance, possibly drawing offers for the Aussie dollar. 

According to Reuters, AUD/USD’s option premiums/implied volatility met renewed demand Friday, highlighting downside fears. From a technical analysis viewpoint, the bias remains neutral, with the exchange rate trapped in the last week’s Doji candle’s range of 0.7659-0.7782. 

Technical levels