- AUD/USD turns positive for the third consecutive session on Thursday.
- A modest intraday pullback, the risk-on mood remained supportive.
- The release of the FOMC meeting minutes eyed for a fresh impetus.
The AUD/USD pair caught some fresh bids during the early North-American session and spiked to over three-week tops, around the 0.6215 region in the last hour.
As investors looked past S&P’s negative outlook on Australia’s AAA sovereign debt rating, the pair managed to reverse an early dip to 0.6115 and turned higher for the third consecutive session on Wednesday.
On the other hand, the US dollar struggled to preserve its gains and witnessed some intraday pullback. This coupled with a stronger opening in the US equity markets provided an additional boost to the perceived riskier aussie.
With the latest leg of a sudden pick up over the past hour or so, the pair recorded a strong 100 pips rally from the daily swing low, albeit persistent worries over the coronavirus pandemic kept a lid on any strong follow-through gains.
It is worth reporting that the New York state – the centre of the US outbreak – and the United Kingdom announced their highest daily death toll on Tuesday, further fueling concerns over the economic fallout from the pandemic.
Bulls are likely to wait for a sustained strength above the 0.6200 round-figure mark before positioning for any further near-term appreciating move as the focus now shifts to the release of the FOMC monetary policy meeting minutes.
Technical levels to watch
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