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  • AUD bulls cheer risk-on amid vaccine, economy re-opening up hopes.
  • US dollar drops broadly along with haven demand.
  • Focus on US CB Consumer Confidence data and risk trends.

The bullish grip around the AUD/USD pair is tightening in the European session, as the US dollar loses further ground against its major rivals amid the upbeat market mood.

The haven demand for the greenback is almost absent so far this Tuesday, as the risk sentiment is buoyed by the renewed hopes over the coronavirus vaccine.

The US-based bio-tech company, Novavax, said on Monday it has started the Phase 1 clinical trial of the vaccine candidate and has enrolled the trial’s first participants, with preliminary results slated as early as July.

Meanwhile, the global economic re-opening driven optimism also boosts the higher-yielding currencies such as the aussie at the expense of the safe-havens – the US dollar and the yen.

The 4% surge in oil prices is also benefiting the resource-linked aussie dollar. The bulls, however, are struggling to extend the upside following Monday’s drop in gold prices.

Further, markets remain wary about the tense situation between the US and China, especially in the context of the Hong Kong security issue, keeping the further gains elusive.

Looking ahead, the dollar dynamics and risk trends will continue to influence the pair’s price movement, as the focus shifts towards the US CB Consumer Confidence data due later in the NA session.

AUD/USD technical levels to watch

At the press time, AUD/USD adds 0.58% to trade at 0.6580, with the upside attempt likely to face immediate resistance at 0.6600 (round figure). A break above the latter would open doors towards 0.6618 (two-month high). To the downside, the 0.6554 (5-DMA) support still remains critical before the bears target 0.6538 (daily pivot point).

AUD/USD additional technical levels