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AUD/USD hits six week highs above 0.7250 as Wall Street soars

  • The Australian dollar is among the top performers of the day.
  • AUD/USD heads for the highest close since mid-September after sharp reversal.

The AUD/USD pair rose further during the American session and climbed to 0.7264, the highest level since September 21. It remains around the top, with a strong bullish tone intact, despite overbought reading in short-term technical indicators.

The key driver is risk appetite on Thursday so far. In Wall Street, the Dow Jones is up by 2.25% and the Nasdaq by 2.24%. Gold rises by 2.52%. Market participants continue to focus on the US election. Biden continues to be the most likely winner, but there are still more votes to count. The Trump camping will make a “major” announcement shortly from Las Vegas. Recently President Trump tweeted “Stop the count”.

Another key event ahead is the FOMC decision. No change in the monetary policy stance is expected. The tone of the Fed could impact on markets. On Friday, the US official employment report is due. In Australia, the central bank will release the Monetary Policy Statement after cutting rates earlier in the week.

Technical outlook

The AUD/USD is trading clearly above the October highs, reinforcing the positive momentum. While above 0.7200, the bias will point to the upside. Resistance levels might be seen at 0.7270 and 0.7295/0.7300.

 

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