AUD/USD rises to weekly highs above 0.7700
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AUD/USD rises to weekly highs above 0.7700

  • AUD/USD gains on the back of risk appetite, back to 0.7700.
  • Stocks rise in Wall Street, commodities also higher, and DXY fails to hold to gains.

The AUD/USD broke above 0.7680/85 and jumped to 0.7714, reaching the highest level since February 27. As of writing, it is hovering around 0.7700, holding onto daily gains and above the 20-day moving average.

The aussie is among the top performers on Monday supported by risk appetite. Investors remain optimistic about the economic recovery, the vaccine and look for important fiscal stimulus in the US.

In Wall Street, the Dow Jones is up by 0.42%, and the Nasdaq gains 0.49%. Gold is rising 1.35% and crude oil up 1.80%; the WTI barrel that trades at the highest level in a year at $57.90.

The US dollar failed to hold to gains. The DXY peaked during the American session at 91.23 and then turned to the downside, bottoming at 90.89, a six-day low. The reversal in US bond yields contributed to the bounce in the USD. The 10-year yield is at 1.15% after hitting earlier at 1.20%, the highest since March.

Levels to watch

From a technical perspective, AUD/USD rose back above the 20-day moving average, supporting more gains in the short-term. The next strong barrier may be seen at 0.7735/40, a downtrend that if broken, could lead to a test of 0.7800. O the flip side a slide back below 0.7655/60 would weaken the outlook for the aussie. The next support stands at 0.7625, followed by 0.7600.



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