- A combination of factors assisted AUD/USD to gain some traction for the third straight day.
- The risk-on mood undermined the safe-haven USD and extended some support to the pair.
- Bulls seemed reluctant to place aggressive bets ahead of the US monthly jobs report – NFP.
The AUD/USD pair held comfortably above the 0.6900 mark through the first half of Thursday’s trading action, albeit lacked any strong bullish conviction.
The pair prolonged this week’s positive move from the 0.6825-20 area and gained some follow-through traction for the third consecutive session on Thursday. The uptick was supported by the prevalent risk-on mood, which undermined the safe-haven US dollar and benefitted perceived riskier currencies, including the aussie.
The global risk sentiment got a strong boost in reaction to the latest positive news related to the development of a vaccine for COVID-19. Germany’s BioNTech announced on Wednesday that a vaccine – co-developed with the US pharmaceutical giant Pfizer – showed promising results during the early stage of human trials.
The greenback was further pressured by the ongoing slide in the US Treasury bond yields, though bulls seemed reluctant to place any aggressive bets around the AUD/USD pair. Concerns about a surge in new coronavirus cases across the world and the possibility of renewed lockdown measures seemed to be the only factor capping gains for the major.
Investors also preferred to wait on the sidelines ahead of Thursday’s release of the closely-watched US monthly jobs report. The headline NFP is expected to show that the US economy created 3 million jobs in June and the unemployment rate edged lower to 12.3% from 13.3%. The data might influence the USD price dynamics and provide some trading impetus.
Technical levels to watch
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