- AUD / USD gains traction for the second day in a row on Thursday.
- The rally in US bond yields benefits the USD and limits the pair’s gains.
The pair AUD/USD moves with a slight positive bias during the European session on Thursday, although it has lacked continuation and has remained limited below the region of 0.7650.
The pair has moved higher for the second day in a row on Thursday and has recovered further from the six-week lows, around the 0.7565 region set earlier this week. The Australian dollar has benefited from an increase in the Australian trade surplus in December, although some subsequent purchases in the US dollar have limited any significant rise.
The Signs of Progress on Additional US Stimulus Measures they have pushed the yield on the benchmark 10-year government bond to nearly the 10-month high reached in January. This has been seen as one of the key factors that have continued to prop up the USD, which received an additional boost from mostly upbeat US economic releases on Wednesday.
In fact, the report of ADP showed that private sector employment in the United States created 174,000 new jobs in January. In addition, the employment subcomponent of the US ISM service sector PMI report showed a significant increase from the previous month and raised expectations for NFP non-farm payrolls, to be released on Friday.
Apart of this, some caution around equity markets has offered some additional support to the US dollar safe-haven and has limited gains for the higher perceived risk Australian dollar. This makes it prudent to wait for a sustained move above the 0.7650-60 region before positioning for any further bullish moves.
Market participants are now waiting for the release of US initial jobless claims data for a boost. This, coupled with the news about the US stimulus, could influence USD price dynamics. Investors could follow the signs of the broader market risk sentiment to seize some short-term opportunities.
AUD / USD technical levels
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