AUD/USD pulls back from 0.6950, still steady above 0.6900

• AUD/USD hits resistance at 0.6950 and pulls back to 0.6920 area
• US dollar depreciates across the board as bright data boosts risk appetite.
• The aussie faces strong resistance at 0.6977 on a break of 0.6944 – Credit Suisse

Australian dollar’s uptrend from 0.6830 lows on Tuesday has found resistance at a one-week high 0.6950 before pulling back during the US trading session. The pair is nearing the top of the last three week’s horizontal range, at 0.6965/75 after having appreciated for four consecutive days.

The aussie appreciates amid generalized USD weakness

The AUD/USD has extended its rally on Thursday, buoyed by a brighter market sentiment following upbeat US Non-Farm Payrolls data. The Labor Department reported that the US economy created 4.8 million jobs in June, the highest increase since records began in 1939.

US employment’s reading has beaten market expectations of a 3 million increase, boosting hopes that the US economy is coming up from the coronavirus lockdown faster than expected. This has weighed on safe-haven assets like the USD, in favor of riskier currencies like the AUD.

Furthermore, news reports that the COVID-19 vaccine developed by the German BioNTech and the American Pfizer is showing successful results in the first trials on humans have contributed to support the risk rally.

AUD/USD: Strong resistance at 0.6977 on a break of 0.6944 – Credit Suisse

The aussie is heading towards a strong resistance area, according to the FX Analysis team at Credit Suisse, that points out to 0.6944 and 0.6977, ““We look for a move higher in due course, with resistance seen initially at 0.6944. Above here is needed to see a break higher towards the upper end of the ‘triangle’ at 0.6975/77, where we would expect to see fresh selling at first. Removal of here on a clear and closing basis would then confirm the bullish pattern and suggest further upside is likely towards even more important resistance at 0.7032/63.”