AUD / USD clings to gains above 0.7300 as market sentiment remains bullish

• AUD / USD is trading in positive territory above 0.7300.
• The US Dollar Index remains in the red below 92.50.
• The optimism of the coronavirus vaccine continues to increase the appetite for risk.

The pair AUD/USD It fell to the 0.7270 zone during Asian trading hours on Wednesday, but had no difficulty reversing its direction. Supported by improving risk sentiment, the pair rose above 0.7300 and was last seen gaining 0.22% on the day at 0.7314.

Data from Australia showed that Westpac’s leading index fell to 0.12% in October from 0.23% in September. Meanwhile, the Governor of the Reserve Bank of Australia (RBA), Phillip Lowe, expressed his support for the RBA’s bond purchase program. “It is completely correct that the government is borrowing to support the economy at this time,” Lowe added.

USD struggles to find demand on Wednesday

Later that day, Pfizer announced that the vaccine it is developing with BioNTech was 95% effective in the final efficacy analysis of the phase three trial. Risk appetite flows started to dominate financial markets after this report and helped the AUD to preserve its strength against its rivals.

Reflecting market optimism, S&P 500 futures are up 0.23% on the day and the US Dollar Index posts moderate losses near 92.30.

Later in the session, housing starts and building permits will be put on the US economic agenda. More importantly, the Australian Bureau of Statistics will release labor market data on Thursday. Investors expect the unemployment rate to rise to 7.2% from 6.9% in October. A disappointing employment report could cause AUD / USD to lose traction.