- The Australian dollar consolidates gains of more than 50 pips against the dollar.
- AUD / USD is on its way to the highest daily close since June 2018.
He AUD / USD is rising strongly on Thursday, driven by risk appetite and a falling dollar. The price reached 0.7639, in European hours, setting new highs in two years. In the last hours it made a slight retreat reaching levels below 0.7630.
The weakness of the dollar is being the main factor of the rise of the AUD / USD. The Dollar Index (DXY) is at a two-year low below 90.00 and still under pressure. The weekly report of unemployment benefit requests, housing start data and manufacturing indicators from the regional Federal Reserve banks of Philadelphia and Kansas will be published in the US.
Attention in the US is also on the negotiations for new fiscal stimuli. A package could be agreed shortly. This has boosted stocks and played against the dollar.
From a technical point of view, AUD / USD remains firmly bullish, with the price looking for new highs. For now the rally stopped at around 0.7640. In case of holding above 0.7600, further raises should not be ruled out in the short term. Key support can be located at 0.7570 / 80: a drop below would point to a bearish extension, or a period of consolidation.
Technical levels
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