- AUD/USD trims gains amid the US dollar rebound.
- S&P 500 futures rebound and risk-on mood underpin the aussie.
- Markets pricing out RBNZ negative rates lifts the Kiwi, AUD.
Fresh bids emerged near the 0.7285 region, allowing a bounce in AUD/USD, as the bulls recapture 0.7300 amid a better market mood.
Positive sentiment seen around the European stocks, amid coronavirus vaccine hopes, alongside the bounce in the S&P 500 futures keeps the higher-yielding aussie supported.
Meanwhile, the aussie also tracks the rally in its OZ peer, the NZD, after markets price out RBNZ negative interest rates. The Kiwi central bank Governor Adrian Orr said Wednesday that the Official Cash Rate (OCR) will remain unchanged at 0.25% until next year.
The RBNZ’s less dovish stance lifts the pressure off the RBA to resort to additional easing, by cutting rates to sub-zero levels. The RBA cut the OCR to a fresh record low of 0.10% and expanded its QE program by AUD100 billion last week, in a bid to boost the post-pandemic economic recovery.
However, the upside in the major appears capped below the two-day highs of 0.7319 reached earlier in the Asian session, as the US dollar has staged a solid comeback across the board amid the relentless rise in the virus cases globally.
Markets remain split between the coronavirus escalation and vaccine optimism, which seems to bode well for the safe-haven greenback.
Looking ahead, the broader market sentiment and the US dollar price action will be closely followed by the aussie traders amid a US partial holiday and quiet data docket.
AUD/USD technical levels
To the upside, “a horizontal zone comprising August-end low and highs marked afterward, around 0.7340/45, holds the key to the quote’s further upside towards the yearly top beyond the 0.7400 psychological magnet. 100-HMA presently stays near an upward sloping trend line from November 02, around 0.7263, to restrict the pair’s immediate downside ahead of the one-week-old support line, at 0.7254 now,” FXStreet’s Analyst Anil Panchal explains.
AUD/USD additional levels
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