- AUD/USD gained traction for the fourth consecutive session on Thursday amid weaker USD.
- Probably Biden victory in the US election was seen as a key factor weighing on the greenback.
- The upbeat market mood further undermined the safe-haven USD and remained supportive.
The prevalent selling bias surrounding the greenback pushed the AUD/USD pair back above the 0.7200 mark, closer to near four-week tops set on Wednesday.
Expectations that Democrat challenger Joe Biden will be the next US president, along with the ongoing steep decline in the US Treasury bond yields continued exerting some pressure on the US dollar. Apart from this, the upbeat market mood – as depicted by a strong follow-through rally in the US equity futures – provided an additional boost to the perceived riskier Australian dollar.
Meanwhile, the final result still hangs on the vote count from a few remaining battleground states. This, coupled with the fact that the incumbent President Donald Trump has already pursued lawsuits and a recount in key swing states might hold investors from positioning for any big moves in either direction. This, in turn, might keep a lid on any strong gains for the AUD/USD pair.
Moving ahead, market participants now look forward to the release of Initial Weekly Jobless Claims data for some impetus. This, along with the US political developments, will influence the USD price dynamics. Later during the US session, the latest monetary policy update by the FOMC will also be looked upon for some meaningful trading opportunities around the AUD/USD pair.
Technical levels to watch
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