AUD/USD: ????????? ???????? ????????? - 0.6765 – UOB Group
Fundamental Forex Analysis

AUD/USD hits fresh multi-week tops, bulls looking to extend the momentum beyond 0.6300 mark

  • AUD/USD continued gaining traction for the fourth consecutive session on Thursday.
  • The weaker tone around the USD deteriorated further after terrible US jobless claims.
  • Technical buying further seemed to have contributed to the ongoing positive move.

The selling bias around the greenback picked up pace in the last hour and lifted the AUD/USD pair to fresh multi-week tops, around the 0.6300 mark.

The pair built on its goodish intraday uptick from sub-0.6200 levels and got an additional boost during the early North-American session in reaction to yet another disastrous US weekly jobless claims data.

The weaker sentiment surrounding the US dollar deteriorated further after the number of people who filed for unemployment insurance for the first time came in at 6.61 million in the week ended April 3.

The reading was worse than consensus estimates pointing to a reading of 5.25 million. Adding to this, the previous week’s reading was also revised higher to 6.87 million from 6.65 million reported earlier.

Apart from the USD weakness, a strong pickup in the US equity futures provided an additional boost to the perceived riskier Australian dollar and remained supportive of the pair’s positive momentum.

Despite the fact that New York State recorded its highest death toll on Wednesday, investors turned optimistic on forecasts that the coronavirus pandemic may be reaching its peak soon.

The up move for the fourth consecutive session could further be attributed to some follow-through technical buying following the previous day’s sustained close above the 0.6200 round-figure mark.

It will now be interesting to see if the pair is able to capitalize on the bullish trajectory or meets with some supply at higher levels as the focus now shifts to the Fed Chair Jerome Powell’s scheduled speech.

Technical levels to watch

 

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