- Aussie cheers risk-on mood, USD weakness and rally in copper prices.
- Upbeat coronavirus data and plans of economic reopening boost risk.
- AUD/USD eyes 100-DMA at 0.6573 ahead of FOMC decision.
Amid relentless US dollar selling across the board, AUD/USD clinches a new seven-week high near 0.6470 region, rallying nearly 1.30% in the European session.
The haven demand for the greenback has vanished amid a better market mood, fueled by falling new coronavirus cases and deaths in the global hots and while some major economies plan to reopen business and eases lockdown restrictions. The Bank of Japan’s (BOJ) additional stimulus announcement also helped boost the risk sentiment further.
Further, the commodity-currencies also derives support from the rally in copper prices to six-week highs. The global monetary stimulus hopes combined with China’s effort to ramp up base metals stockpiles prompted the gains in the red metal.
China’s Yunnan province is said to announce 1 billion yuan to help businesses stockpile 800,000 tonnes of base metal to boost its real economy after the outbreak. China is the world’s biggest consumer of the non-ferrous metal and it is Australia’s top export destination.
Meanwhile, the aussie ignored the slump in the Chinese industrial profits, as the risk-on market profile dominated. China’s Industrial Profits plunged 34.9% YoY in March.
Technically, the spot looks to take out the 0.65 handle on its way to conquer the 100-DMA target at 0.6573. The bulls are likely to remain in command so long as the price holds above the 0.6390 support area, the confluence of the 5-DMA and daily pivot point.
AUD/USD additional technical levels to consider
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