During Tuesday’s European trading session, the AUD/USD currency pair succeeded to extend its previous session winning streak and caught some further bids around above 0.7700 level mainly due to the fresh upticks in S&P 500 futures, which tend to underpin the perceived risk currency Australian dollar and contributes to the currency pair gains. Hence, the market trading sentiment got support from the fresh hopes of the coronavirus vaccine and the U.S. covid stimulus.
Across the pond, the broad-based U.S. dollar selling bias, triggered by multiple factors, also played its significant role in supporting the currency pair. In contrast to this, the long-lasting coronavirus woes globally keep questioning the market’s upbeat mood, which becomes the key factor that kept the lid on any additional gains in the currency pair. The AUD/USD currency pair is currently trading at 0.7716 and consolidating in the range between 0.7661 – 0.7725.
Despite the prevalent burden of the coronavirus (COVID-19) resurgence, the market trading sentiment stopped its previous session bearish moves and started to flash green amid fresh optimism over a potential vaccine/treatment for the highly infectious coronavirus. As per the latest report, the U.S. Food and Drug Administration (FDA) showed that almost 95% success ratio of the leading coronavirus vaccines after two doses. Moreover, the global markets put high hopes of the Democratic victory in the Georgian run-off, which sparked additional fiscal support possibilities. Thereby, the prevalent upbeat market mood underpinned the Australian dollar’s perceived risk currency and contributed to the currency pair gains.
On the bearish side, the intensifying worries about the continuous surge in new COVID-19 cases kept challenging the upbeat market sentiment and became one of the key factors that kept the lid on any additional currency pair gains. As per the latest report, Japan saw a record number of COVID-19 cases in recent days, which in turn, Prime Minister Yoshihide Suga said that he would consider declaring a fresh state of emergency in the Tokyo area. Across the ocean, the U.K. Prime Minister Boris Johnson also gave warnings over the possibility of tougher lockdown restrictions in the U.K.
Looking forward, the market traders will keep their eyes on the German Unemployment Rate, which is due at 08:55 GMT, and the US ISM Manufacturing, which is scheduled for release at 15:00 GMT. Meanwhile, the updates about the U.S. stimulus package will be key to watch. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.
Daily Support and Resistance
Pivot Point 0.7703
The AUD/USD pair is trading at the 0.7719 level, heading further higher, and it may find resistance at the 0.7740 level. The 50 periods EMA supports the pair at the 0.7695 level as the MACD also suggests a strong buying trend. On the lower side, the pair may find support at the 0.7684 level today. Let’s consider taking a buying above 0.7685 and selling below 0.7740 level today. Good luck!