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AUD/USD refreshes multi-month high as bulls battle 0.7900 amid market optimism from wisepowder's blog

AUD/USD refreshes 35-month top with 0.7899 figures, currently up 0.23% around 0.7885, during Mondays Asian session. In doing so, the bulls keep the reins following the heaviest run-up in seven weeks posted last Friday.To get more news about WikiFX, you can visit wikifx official website.

  While looking for the catalysts, the overall upbeat sentiment joins headlines from the global rating agency Fitch and comments from Chinese diplomat Wang Yi seem to have played their role. It should, however, be noted that the lack of major data/events keeps the AUD/USD bulls chained off-late.

  Fitch cited Australia‘s strong institutions and an effective policy framework to keep ’AAA credit rating. However, However, uncertainty around the medium-term debt trajectory following the significant rise in public debt/GDP caused by the response to the pandemic pushed the rating giant to have a negative credit outlook for the Pacific major.

  On the other hand, Chinas State Councillor and Foreign Minister Wang Yi blamed the previous US government for the Sino-American tensions and pushed for fresh ties in his latest comments. The top diplomat cited further areas for cooperation while urging the US to not interfere in their initial issues and call back the trade-restrictive duties.

  It should be noted that the UK‘s readiness to ease the virus-led lockdown and Israel’s optimism following the victory over the coronavirus (COVID-19) seem to favor the risks. Also on the positive side are hopes of the US covid relief package.

  Alternatively, the strength of the US 10-year Treasury yields, currently up 2.4 basis points (bps) to the fresh multi-year high near 1.36% challenge the quote‘s further upside. However, the S&P 500 Futures’ run-up after four consecutive days of declines favors the AUD/USD bulls.

  Moving on, a lack of major data/events will keep AUD/USD traders directed towards the risk news for fresh direction.

Technical analysis
  A sustained break above 0.7900 needs validation from March 2018 top near 0.7915-20 for further upside. Meanwhile, Januarys top near 0.7820 can lure the AUD/USD sellers during the fresh downside.

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By wisepowder
Added Feb 23


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