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  • Aussie holds on to gains despite Australian data and downgrade.
  • AUD/USD improves technical outlook after breaking last week highs. 

The AUD/USD pair broke above 0.6210/15 and climbed to 0.6237, reaching the highest level since March 16. The latest leg higher took place as equity prices in Wall Street extended gains. The Aussie remains among the top performer on Wednesday despite weaker than expected Australian data and the downgrade. 

Improvement in market sentiment 

The Dow Jones is rising 2.65% and the Nasdaq gains 2.15%. The decision of Bernie Sanders to end his 2020 presidential campaign boosted prices further. As US stocks printed fresh highs, AUD/USD rose further also supported by technical factors after breaking above the Tuesday and last week highs. 

Earlier on Wednesday, housing data in Australia came in below expectation, and S&P cut Australia’s credit rating outlook AAA from stable to negative. The aussie was affected only for a few minutes. 

The key driver in the weekly rally of AUD/USD is the improvement in market sentiment and a weaker US dollar across the board. The DXY is up 0.17% after trimming most of its daily gains and holding in positive territory because of the slide of EUR and CHF. 

Technical levels