The AUD/USD pair was closed at 0.71174 after placing a high of 0.71365 and a low of 0.70445. Overall the movement of the AUD/USD pair remained bullish throughout the day. On Wednesday, the AUD/USD pair posted the biggest gain since October 09 amid the broad-based US dollar weakness and the improved risk sentiment due to US stimulus package talks’ developments.
Investors were confident about the chances of a coronavirus stimulus agreement in the US that raised the market’s risk appetite and supported Aussie’s risk. The US President Trump said that he was willing to accept a larger relief bill despite Senate Republicans’ opposition and boosted optimism in the market. Like the Australian dollar, the riskier currencies gained from it and supported the AUD/USD pair’s upward movement on Wednesday.
On the data front, at 04:30 GMT, the MI Leading Index for September came in as 0.2% compared to August’s 0.5%. At 05:30 GMT, the Retail Sales from Australia came in as -1.5%. The investors mostly ignored Australia’s data as the focus was shifted towards the US stimulus package deal.
The latest minutes released by the Reserve Bank of Australia showed that the further rate cut has been on the table. This weighed on market sentiment as well as increase the bearish pressure on the Australian dollar. The Aussie dropped in previous days because of increased negative pressure generated by the rising chances of further monetary easing. However, on Wednesday, the AUD/USD pair recovered most of its previous day’s losses and rose about 1% on a day.
The risk sentiment was also supported by the hopes that the results from phase-3 trials of vaccines will be delivered in the coming months that will approve one-or-two vaccine by the end of the year. These hopes favored the Australian dollar further and pushed AUD/USD pair even higher.
Daily Technical Levels
Pivot point: 0.7097
The AUD/USD is trading with a bullish bias at 0.7110, heading towards the next resistance level of 0.7136 level. On the lower side, the AUD/USD may find support at 0.7087, and closing of candles above this level may drive the pair further higher. The MACD is suggesting a buying trends; therefore, we have opened a buying trade over 0.7110. Checkout a trade signal…
Entry Price – Buy 0.71124
Stop Loss – 0.70724
Take Profit – 0.71524
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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